Policymakers at all levels of government understand the importance of setting policy to secure housing during the COVID-19 pandemic.  As a result, government officials extended foreclosure moratoriums.

U.S. Federal Foreclosure Moratoriums

Federal Housing Finance Agency: To help borrowers and renters who are at risk of losing their home due to COVID-19, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will extend their single-family moratorium on foreclosures and evictions until at least August 31, 2020. The foreclosure moratorium applies to enterprise-backed, single-family mortgages only.
Federal Housing Administration: To provide more security for homeowners impacted by COVID-19, the U.S. Department of Housing & Urban Development’s Federal Housing Administration extends foreclosure and eviction moratorium for single-family homeowners through August 31, 2020.

 State Foreclosure Moratorium

The states listed below have foreclosure moratoriums that apply to community association foreclosures.   The dates below indicate when the current moratorium will expire. However, some states continue to extend the moratorium dates. Some of these moratoriums indicate that foreclosure actions should be taken now, which may include filing a lien. If the moratorium allows a community association to secure their interest by filing a lien, communities should consider the language they use in their lien notices. While the notices should include the requirements outlined in the law, there should be consideration given to compassionate and non-threatening language.

Communities should check CAI’s website for the latest information.  Click here for the link to foreclosure and eviction actions.

State Community Association Foreclosure Moratorium Expires
Alaska June 30
California 90-days post state of emergency
Florida July 1
Indiana June 30
Maryland July 25
Nevada June 30
New Hampshire Duration of stay-at-home order
New York August 19
Pennsylvania July 10

According to Black Knight, a data and analytics provider for mortgage and lending and servicing, U.S. home mortgage delinquencies surged to the highest level since November 2011. Total borrowers more than 30 days late skyrocketed to 4.3 million in May from 3.4 million in April. In addition, more than 8% of all U.S. mortgages were past due or in foreclosure, reports Black Knight.

According to CAI’s recent survey about COVID-19 and its impact on community associations, approximately 9% of all community association assessments are past due.  With community association assessment delinquencies increasing slightly, association boards have a duty to ensure the financial stability of the community while balancing the financial crisis of some owners.

CAI encourages community associations to voluntarily adopt its  Community Associations Institute Moratorium on Foreclosures and evictions while continuing to work with residents to develop payment plans and other reasonable accommodations for residents financially impacted by COVID-19.

For more information on government actions impacting community associations due to COVID-19, visit https://www.caionline.org/Pages/covid19gov.aspx.

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