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12.3.3.6 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.

Footnotes

  • 295 CARES Act § 4022(c)(2).