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Posted on: August 11, 2021

End to the Mortgage Foreclosure Moratorium: What does this mean for me?

County News

Advice from the Jefferson County Public Trustee’s Office – Jerry DiTullio & Holly Ryan

The moratorium on foreclosing federally insured loans officially ended July 31, 2021. The moratorium prohibited lenders of federally insured defaulted loans from referring those loans to foreclosure. It also precluded loans already in foreclosure from proceeding to sale. This means if you have a federally insured loan and are behind on your payments by more than 120 days, your lender can start a foreclosure action. Also, if you were in foreclosure prior to March 18, 2020 (initiation of the COVID Pandemic Moratorium) your foreclosure can proceed to sale with no additional notice.

In April 2021 the Consumer Financial Protection Bureau (CFPB) recommended that mortgage lenders refrain from initiating foreclosures until Dec. 31, 2021. As this is a recommendation and not a requirement, some lenders may wait to initiate foreclosure actions, but some may not. It is recommended that you work with your lender if you are behind in your payments.

In a recent press release, President Biden and the CDC requested that Federal lenders delay their foreclosure-related evictions until after Sept. 30, 2021, but again, this was not a mandate.

Federal mortgage assistance will be available, called the Homeownership Assistance Fund. These funds are in the process of being sent to states from the federal government. To learn more about when they will be available, and up-to-date details on the Homeownership Assistance Fund in Colorado, please visit the Rental Mortgage Assistance webpage. This is the best place to obtain current information on the availability and eligibility of mortgage assistance once the program is available.

What if I Rent and Am in Arrears? Emergency Rental Assistance Program
The Public Trustee’s office is not involved with renter evictions, however Governor Polis issued an executive order on July 30 requiring that a thirty (30) day notice be provided to tenants before evicting them for non-payment of rent.

If you are a renter and need help, there is help available through the Emergency Rental Assistance (ERA) program. The Emergency Rental Assistance Program can help cover rent as far back as April 2020, including past due, current, and two additional months of rent payments up to a total of 15 months of assistance. If you are interested in applying for ERA resources, contact your landlord and visit the Jefferson County Human Services website to see if you are eligible.

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