Finder News
Published in

Finder News

FHFA extends foreclosure and eviction protection into 2021: What hopeful homebuyers need to know

If you’ve been waiting for prices to drop before buying a home, you’ll likely be waiting at least a bit longer.

The Federal Housing Finance Agency (FHFA) announced Wednesday that borrowers at risk of losing their housing due to the pandemic would be able to stay in their homes until January 31, 2021, without fear of facing eviction or foreclosure. Previously, these protections were set to expire at the end of December.

Why was the moratorium extended?

The CDC initially ordered the moratorium on September 1st to prevent the further spread of the coronavirus. Wednesday’s extension comes as the number of new cases is spiking in many areas of the country and the lack of a second stimulus package means many Americans are still having trouble making ends meet. The extension will allow more renters and homeowners to remain where they are for at least one more month.

Who qualifies for these protections?

The moratorium and the extension apply to landlords and homeowners with single-family mortgages that are backed by either the federal government or government-sponsored enterprises (GSEs). This includes borrowers of FHA, VA and USDA loans, as well as homeowners with mortgages through Freddie Mac or Fannie Mae. However, renters don’t automatically qualify for these protections, and they must still meet certain criteria to qualify for the protection.

What this means if you’re waiting to buy

If you’ve been waiting for housing prices to fall before buying a home, the news means you’ll likely be waiting at least a bit longer. There’s currently a high demand in the housing market, and inventory is low in many major cities. This translates to a seller’s market in which you can expect home prices to continue rising.

When will home prices start falling?

It’s unlikely that the housing market will change much before the end of January, as struggling homeowners will be able to stay in their residences longer, and landlords interested in selling their properties won’t be able to evict their tenants. (It’s important to note, however, that while renters may be able to remain in their residences even if they can’t make their full payment each month, they can still be evicted for violating the terms of their leases.)

In all likelihood, home prices will continue to trend upward at least until February. But it’s reasonable to assume that once the moratorium ends, inventory will increase and home prices will become more competitive.

Is the moratorium likely to be extended again?

With several vaccines expected to make their way to market during the next six months, housing protections are likely to end at some point soon. No one knows with any certainty whether the moratorium will be extended, but the FHFA is actively monitoring the impact of the pandemic upon the mortgage industry, and it will respond accordingly.

Ready to buy now?

Despite rising prices and the lack of inventory on the market, mortgage rates remain at record low levels. If you can’t wait any longer to buy a home, explore the rates and terms offered by today’s best mortgage lenders.

Photo: Getty Images

Originally published at on December 3, 2020.




Finder News delivers the latest money, insurance, shopping and travel developments in a way that helps you compare your options and make better decisions.

Recommended from Medium

On the Language of Money and the Instability of its Supporting System

Will The Economy Save The GOP In November?

Immigrants can help to increase the productivity for Canadian businesses

Immigrants can help to increase the productivity for Canadian businesses

Unemployment falls, optimism rises in the EU one year after Brexit vote

Anomaly: Offshore banking will thrive in the transparency era

Europe, China And India: The Financial World in 2030 by Simon Pearson

Why I Dissented

The road to Africa’s future growth is paved with electronic payments

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Michael Benninger

Michael Benninger

Writer & Editor

More from Medium

Specialisms (4): on Films

CS 373 Spring 2022: Bruce Nguyen: Final Entry

How to Help Putin Out

NFT Bumi Forest collectible items for sustainability and conservation