188.8.131.52 USDA Foreclosure Moratorium
Following the other federal agencies, on March 19, 2020, the USDA announced a foreclosure moratorium for its guaranteed and direct loans. After the expiration of the CARES Act, the USDA extended moratorium protection in line with the other federal agencies. Its January 21, 2021 guidance states, “[e]ffective January 20, 2021, with the exception of vacant or abandoned dwellings, foreclosures and related evictions for borrowers with USDA single family housing Direct and Guaranteed loans are suspended through March 31, 2021.”122 The agency’s February 16, 2021, press release extended the moratorium to June 30, 2021, following the Biden Administration’s announcement on preventing COVID-19 foreclosures.123 It’s important to note that the USDA’s announcement lacks detail regarding initiation of new cases and moving for judgment in pending cases; however, advocates should point to other agency guidance to support a broader scope of protection.
122 USDA, USDA Implements Immediate Measures to Help Rural Residents, Businesses and Communities Affected by COVID-19 (updated Jan. 21, 2021), available at https://www.rd.usda.gov.
123 USDA, Press Release, Biden Administration Announces Another Foreclosure Moratorium and Mortgage Forbearance Deadline Extension That Will Bring Relief to Rural Residents, Release No. 0026-21 (Feb. 16, 2021).