Federal eviction, foreclosure moratorium set to end after June 30

Some who have fallen behind on payments during the forbearance period may have large bills waiting
Renters and borrowers may have fallen behind on payments during the pandemic. Their grace...
Renters and borrowers may have fallen behind on payments during the pandemic. Their grace period is set to expire in a couple weeks.(KKCO/KJCT)
Updated: Jun. 16, 2021 at 7:02 PM MDT
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GRAND JUNCTION, Colo. (KKCO) - The federal moratorium on evictions and foreclosures is set to expire after June 30. The pandemic-era policy was set in place back in 2020.

Mesa County Public Trustee Sheila Reiner expects to see foreclosure sales resume by the end of July. Her office arbitrates the process between borrowers and lenders. Grand Junction non-profit Homeward Bound, which provides temporary housing to those in need, is worried about the upcoming deadline. According to Clarita Inman, Homeward Bound Housing and Support Services Coordinator, “We’ve had many inquiries regarding this coming up. Individuals that are trying to prep for leaving their homes, individuals inquiring about our services, what we provide and what we do within the community.”

The goal of the moratorium was to help renters and mortgage-payers to stay in their housing amid the economic downturn. However, many will face steep bills if they’ve fallen behind on their payments. Mesa County expects to resume mediating foreclosure home sales shortly after the moratorium ends. However, the county hopes that borrowers can act now to avoid foreclosure.

Reiner explained that she hopes ”that we can help educate the public that this coming to an end. And if you are one of those people who needed to take advantage of the forbearance options during the COVID pandemic, just a heads up. We hope that those people will work with their lenders to bring their payments up to date as soon as possible.”

According to Homeward Bound, keeping individuals struggling with payments in their current housing is key. In doing so, the path to housing stability is much clearer according to the organization. However, once housing is lost, that goal becomes more difficult to achieve.

Inman said that “It is definitely more difficult for someone to lose housing and attempt to get housing again. One of the best ways that we can look at supporting individuals is figuring out a way to maintain their housing and stabilize the families and individuals in that capacity.”

However, Homeward Bound says many are struggling with their payments, choosing between rent, medication, and food.

This end to eviction and foreclosure forbearance comes as the housing market is on fire. Homeward Bound says getting people into independent, stable housing has become more difficult as home prices have risen.

Reiner stressed that foreclosure is just one process that lenders can pursue.

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