Georgia has not issued a moratorium on residential or commercial foreclosures in response to COVID-19. However, there are two protections for homeowners with federally backed mortgages. First, lenders may not foreclose on federally backed mortgages until at least August 31, 2020. HUD authorized FHA to implement a foreclosure moratorium for single family homeowners with FHA-insured mortgages which currently runs through August 31, 2020.
Second, under Section 4022 of the CARES Act, homeowners with FHA, USDA, VA, or Section 184 or 184A mortgages and mortgages backed by Fannie Mae or Freddie Mac have the right to request and obtain up to a year forbearance of mortgage payments upon claiming a pandemic-related hardship. No additional fees, penalties, or interest can accrue beyond those already scheduled. Homeowners still must pay any missed or reduced payments in the future.
Privately held loans are not eligible under these federal programs, but homeowners experiencing difficulty should contact lenders to inquire about other assistance programs.
As for residential and commercial foreclosures not impacted by federal relief, while Georgia has not implemented a moratorium, as a practical matter, there may be delays in completing foreclosures, at least foreclosures requiring court proceedings due to court restrictions and a growing backlog. Moreover, UCC commercial foreclosures must be conducted in a “commercially reasonable manner” which raises issues as to whether different procedures may be required due to COVID.
If you have questions or are uncertain about your rights and obligations, please contact us to help you navigate this situation.
https://www.hud.gov/press/press_releases_media_advisories/HUD_No_20_081 (June 17, 2020 HUD Press Release)
