220.127.116.11 CARES Act Foreclosure Moratorium
In addition to the forbearance provisions, the CARES Act imposed a sixty-day moratorium on foreclosure activity. The moratorium applied only to federally backed loans, but it was not limited to borrowers who could establish COVID-19 related hardships. The ban on activity was broad—it stated that lenders “may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale.”295 The CARES Act moratorium expired on May 17, 2020 without extension.
All of the federal agencies that insure, guarantee, or own the “federally-backed” loans covered by the CARES Act subsequently issued their own foreclosure moratoria; however, the moratoria have expired as of July 31, 2021. Advocates should consider state-based moratoria or protections provided by the amendments to Regulation X that the CFPB issued effective August 31, 2021.
295 CARES Act § 4022(c)(2).