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Upcoming CFPB Rule change for foreclosures

The Consumer Financial Protection Bureau announced a new rule today to prevent a wave of foreclosures due to coronavirus.

Here is a summary from the New York Times:

“In most cases, lenders will only be allowed to foreclose on a home if it is abandoned, if the borrower has not responded to messages for at least 90 days, or if the borrower has been formally evaluated for all available “loss mitigation” options (such as a loan modification) and none are viable.

Servicers will also be allowed to proceed with foreclosures for borrowers who were already 120 or more days delinquent before March 1, 2020.

The new rule also allows mortgage servicers to more easily offer some loan modifications so long as the changes do not increase a borrower’s monthly payments or extend the loan’s term more than 40 years beyond the modification date.”

I think the big foreclosure wave people are talking about after the eviction/foreclosure moratoriums end is not going to happen.

https://www.consumerfinance.gov/about-us/newsroom/cfpb-issues-rules-to-facilitate-smooth-transition-as-federal-foreclosure-protections-expire/

submitted by /u/Vivecs954
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source https://www.reddit.com/r/RealEstate/comments/oa8mxq/upcoming_cfpb_rule_change_for_foreclosures/
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