Currently, an order from the Centers for Disease Control and Prevention has imposed a moratorium on evictions. However, that order is set to expire at the end of the year, putting up to 13 million renter households at risk of eviction, according to CNN.
Last month, Sen. Sherrod Brown (D-Ohio) warned that the country could face a wave of foreclosures once the Federal Housing Finance Agency’s forbearance programs expire.
“It is unlikely that borrowers will understand how quickly foreclosure could begin” after forbearance ends, Brown wrote in a letter to Consumer Financial Protection Bureau Director Kathy Kraninger. “If servicers begin the foreclosure process before the borrower has an opportunity to either extend their forbearance or be evaluated for an appropriate modification, it could add unnecessary costs for borrowers, make it harder to complete a request for assistance, and risk triggering foreclosures that could threaten families’ and neighborhoods’ recovery from the pandemic.”