Foreclosure Moratorium Extension in DC

The Foreclosure Moratorium Extension Emergency Amendment Act of 2022 was signed by the mayor of the District of Columbia on February 3, 2022. This new law extends the time frame during which residential foreclosure operations are prohibited, taking effect from March 11, 2020, until June 30, 2022. Mortgage holders and loan servicers cannot initiate or carry out home foreclosures, foreclosure sales, or enter judgments that foreclose the right of redemption during this time. 

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The moratorium is also extended until September 30, 2022, in the event that homeowners are being considered and have applied for the Homeowner Assistance Fund program (HAF) or any similar program that helps households impacted by Covid-19. You must apply for homeowner assistance and present documentation no later than 60 calendar days following July 1, 2022, in order to be eligible for this prolonged moratorium.

DC Homeowner Assistance Fund program (HAF)

Last month, Mayor Muriel Bowser and the DC Department of Housing and Community Development (DHCD) announced a new homeownership program, the DC Homeowner Assistance Fund program (HAF), with $50 million from the American Rescue plan of 2021. DC residents who own homes affected by COVID-19 are eligible to apply for grants to help pay their past-due mortgage payments, real estate taxes, utilities, homeowner association dues, and other housing costs. They are eligible to receive up to $120,000.00.

The world battled the Covid-19 pandemic for two years and is now facing inflation and increased prices on food, gas, and utilities. This resulted in a lot of people losing their jobs, losing their businesses, and getting behind on their mortgage payments, taxes, utilities, and other housing-related expenses. To help its residents the US government signed the American Rescue plan of 2021 which gave each state funds to help them recover. 

Avoiding Foreclosure

Homeowners facing foreclosure should be aware of the resources available. In DC, free HUD-approved housing counselors can be contacted at the Foreclosure Prevention Hotline at (202) 265-2255 which will inform them of all their options available. Contacting your mortgage services is your next and most important step. He/She should be aware of your financial hardship. Keep in mind that, you must be more than 120 days delinquent in your payments before your mortgage servicer can send you the first notice or file for foreclosure.

For more information on getting a grant and also learning about refinance programs, take a look at this.