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CARES Act foreclosure and eviction moratorium in place until July 25

(WILX)
Published: Jul. 1, 2020 at 4:28 PM AKDT
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The state’s temporary ban on foreclosures, evictions and repossessions ended July 1.

The protections were put in place by the state legislature back in March to help Alaskans who lost income during the coronavirus pandemic.

Even though the state’s moratorium was not extended, the Federal CARES Act moratorium is still in place until July 25.

The CARES Act prohibits evictions for non-payment of rent in “covered properties” or properties with certain mortgage forbearances. Evictions for non-payment of rent can now proceed in non-covered properties.

A “covered property” falls under a property owner that has a federally backed loan or is considered public housing.

Below are other protections under the law:

- Borrowers who have federally backed mortgages and are experiencing financial hardship during the COVID-19 outbreak may request a forbearance on their mortgage payments. This forbearance is for up to 180 days and may be extended for an additional time period of up to 180 days. No additional fees, penalties, or interest beyond those applicable if the borrower made all payments on time may be applied to a mortgage in forbearance.

- A servicer of a federally backed mortgage may not initiate a foreclosure for 60 days beginning on March 18, 2020, unless the property is abandoned or vacant. Such a servicer is further prohibited from executing a foreclosure-related eviction or sale during this period.

- Multifamily-property loan borrowers who have federally backed mortgages and are experiencing financial hardship during the COVID-19 outbreak may request a forbearance on their mortgage payments. This forbearance is for 30 days and may be extended for an additional 60 days.

- Multifamily-property loan borrowers receiving a forbearance may not evict tenants or charge late fees for the duration of their forbearance.

- Tenants in specified federally backed housing (e.g., federally subsidized housing, rural voucher-program housing, and housing financed through federally backed mortgages) may not be evicted for 120 days beginning on the date of enactment of this subtitle. A lessor that serves an eviction notice after this time period must provide the tenant with 30 days to vacate.

Copyright 2020 KTUU. All rights reserved.

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