The CFPB has suggested that the government institute a foreclosure moratorium until 2022. Foreclosure typically happens when a borrower falls behind on their mortgage payments and the lender initiates the foreclosure process, commencing a period of time when the borrower may be evicted from the home.
This moratorium would apply to loans that were packaged into securities and sold off to investors. The CFPB also suggested firms not pursue foreclosure of loans they have not yet sold to private investors. The proposal is currently a draft that will be submitted to the Federal Register for comments.
So, are we all doomed? While the news is certainly a blow to the industry, it’s not all bad news. For starters, the CFPB has already slowed work on its foreclosure database, so the moratorium is unlikely to have any impact on the current situation at hand. Second, we’ve already seen that the CFPB can’t directly control the foreclosure process
It has been nearly a decade since the housing crisis, and so much time has passed many people have forgotten that it is still an issue today. But there are still a lot of people suffering from foreclosure, and many people are illegally foreclosing on people. That’s why the Consumer Financial Protection Bureau (CFPB) has suggested that there should be a moratorium on the foreclosure of homes until 2022.
The investor impact of this move would be severe, as many investors rely on the ability to foreclose on a property as a source of income. The moratorium may be an attempt to assist borrowers, but it will impact foreclosing investors significantly.
If you’re in trouble with your mortgage payments, you’ve likely already been contacted by your lender, who may have even threatened foreclosure. But that doesn’t mean you’ll lose your home, or that you need to hire a professional to help you. In some cases, you can apply for a loan modification yourself. It can be a long and frustrating process, but it may be your best bet to save your home.