The pandemic has made it difficult for those struggling to pay their mortgages, but one proposal may change that.
The Consumer Financial Protection Bureau has proposed banning foreclosures until next year, CBS News reported.
Those behind on their mortgages would be given a pre-foreclosure review period that would restrict servicers from starting foreclosure until 2022.
The coronavirus pandemic has crippled the economy and forced families to face the risk of foreclosure when federal emergency protections expire.
“We’ve seen a shocking increase in housing insecurity, with millions living precariously and months behind on mortgages or rent,” said CFPB Director Dave Uejio.
Back in February, there were nearly 3 million homeowners behind on their mortgages, with an estimated 2.1 million mortgages behind by at least 90 days, according to the agency.
The CFPB is also proposing a way to protect loan servicers from a major hit if mortgage borrowers default.
CBS News reports that would include allowing servicers to offer streamlined ways to help homeowners adversely affected by COVID-19 to lower their mortgage payments.
Cox Media Group