Known as of March 17, 2020:
Foreclosures and Evictions have NOT stopped nationally… but there’s good news for those with FHA mortgages! (and maybe Fannie Mae and Freddie Mac… )
While Trump did not stop all foreclosures and evictions across the country—the President did order HUD (Housing and Urban Development; an agency of the United States government) to stop the foreclosure of FHA underwritten mortgages and evictions with FHA underwritten mortgages during the formal, COVID-19 federal state of emergency until the end of April…
This is a huge step by the federal government acknowledging that foreclosures and evictions should be stopped because homes are essential to people’s health. However, it does not effect the vast majority of people with mortgages who might be in the foreclosure process or—like in Massachusetts—are fighting an eviction case after a purported foreclosure.
While the Federal Housing and Finance Authority (FHFA: the agency that oversees Fannie Mae and Freddie Mac) also has apparently told their two organizations to stop foreclosures and evictions, MAAPL knows that Fannie Mae and Freddie Mac have no personnel who directly track what mortgages they own. This means that the Fannie and Freddie can only give a general order to the mortgage servicers, not a specific one regarding named, individual mortgages.
Additionally, the servicers themselves do not always know if a specific mortgage was purchased by Fannie Mae or Freddie Mac. Therefore, this FHFA statement stopping these foreclosures and evictions may not carry the force it should in individual cases.
But you should know: the Massachusetts Housing Courts are not taking action on eviction (Summary Process) cases until April 21st—unless one of the parties claims it is an emergency.
Please correct everybody you know who may be misinformed about Massachusetts Foreclosures and Evictions during this COVID-19 emergency.
Please post this piece broadly across Facebook and the internet. Trump’s HUD action does not protect the vast majority of people facing foreclosure or an eviction.
What the country needs is actual legislation at the state level—state by state. Those of you working on your legal foreclosure cases know that almost all the country’s foreclosure-related law is at the state level, not the federal level. No government body at the national level has the authority to stop all foreclosures or evictions across the country.
So, what can you do?
- MAAPL asks you to: support legislation at the state level to stop all foreclosures and evictions. Massachusetts has the ability to do this for Massachusetts residents. Please post this information broadly.
- Call your MASSACHUSETTS legislators immediately to co-sponsor HD4935 to halt Massachusetts foreclosures and evictions during its COVID-19 emergency before noon on Friday, March 20th, 2020.
- Please share the good news with your friends with FHA mortgages. But don’t believe or spread false promises and misleading information at this very serious time.
- Tell everyone you know fighting a Massachusetts foreclosure! MAAPL holds regular, 5pm Sunday night calls. Dial 515-606-5122, and use the code 794420 when prompted.
For more information on Massachusetts legislative and other anti-foreclosure action, keep checking this website!
Grace C Ross, Coordinator
Mass. Alliance Against Predatory Lending