60 Day Foreclosure Moratorium Alert – Coronavirus Stimulus Bill 2020

Section 4022 of the Coronavirus Stimulus Bill contains a moratorium against initiating judicial or non-judicial foreclosures on any property owner with a Federally backed mortgage loan.**

The moratorium prevents any foreclosure related action for 60 days beginning on March 18, 2020.

This moratorium applies to first and second mortgages on cooperatives, condominiums and 1 to 4 family properties.

If you need financial assistance...Be Proactive. Contact your mortgage lender or servicer immediately to get more information and make sure you refer to this section of the law when you speak to your mortgage lender or servicer.

**A Federally back mortgage loan is any loan insured by the Federal Housing Ad-ministration; insured under the National Housing Act; insured the Housing and Community Development Act of 1992; guaranteed or insured by the Department of Veterans Affairs; guaranteed, made or insured by the Department of Agriculture; or purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.

Understanding The Difference Between Judicial and Non-Judicial Foreclosures

By Kenneth F. McCallion, Esq. 

It is very important to understand the difference between judicial foreclosures and non-judicial foreclosures. In simple terms, a judicial foreclosure requires a proceeding in a court. A non-judicial foreclosure does not require any proceeding in a court. In each type of procedure, a lender has the right to auction a property if the lender has properly filed all of the necessary paperwork. Let’s review important aspects of each.