Congress does not pass extension of eviction moratorium, but landlords and tenants still have options
Congress failed to extend the eviction freeze on Friday before entering its summer vacation. But homeowners and tenants struggling to make payments still have options. (iStock)
Congress failed to pass a bill over the weekend that would have extended federal protections against evictions beyond the July 31 deadline.
This comes after the Federal Housing Finance Agency (FHFA), the Federal Housing Administration (FHA) and the Department of Veterans Affairs. each announced last week that their moratoriums on evictions linked to the coronavirus pandemic will be extended until September 30, 2021. The extensions will protect people in homes with federally guaranteed mortgages and government sponsored rent programs
The Center for Disease Control (CDC) previously had instituted a freeze on evictions in September 2020 to help stop the spread of COVID-19; the agency extended the freeze twice for people earning less than $ 99,000 in 2020 and couples reporting jointly earning less than $ 198,000.
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After a Supreme Court judgment in June, he made it clear that the CDC could not extend the ban again, it was up to Congress to pass a bill if it wanted to maintain the moratorium on evictions. But with many Democrats and moderate Republicans opposed to an extension, Congress couldn’t get enough votes to extend the freeze until August.
“It is extremely disappointing that Republicans in the House and Senate have refused to work with us on this issue,” said House Speaker Nancy Pelosi, Majority Leader Steny Hoyer and Majority Whip James Clyburn. in a joint press release. “We urge them to reconsider their opposition to helping millions of Americans and to join us in helping tenants and landlords hardest hit by the pandemic and preventing a nationwide eviction crisis.”
If paying rent has become a hardship and you are now at risk of eviction, you may want to consider taking out a personal loan. When you start shopping, Credible can do the heavy lifting for you. With a single click, you can view multiple lenders, rates and terms in one place. Get started with your personal loan purchases today.
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The bill, introduced by Representative Maxine Waters (D-Calif.), reportedly extended the federal eviction freeze until Oct. 18, a move President Joe Biden’s administration has declared necessary amid the increased spread of COVID-19 due to its Delta variant.
“Congress has the power to order the CDC to extend the moratorium on evictions to provide relief, as we encourage state and local governments to distribute the money we have allocated,” Pelosi said in an e- mail to House Democrats on Friday. But Congress ended the week without obtaining the votes necessary to extend the temporary shutdown and entered its summer recess, making it unlikely that a bill will be passed in the coming week.
Congressional Democrats criticized Biden’s administration for waiting until the last minute to request the extension, saying it didn’t give them enough time to agree on what the bill should look like.
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What options are available to struggling Americans?
Many Americans – about seven million – were behind on their rent last May. Half of these citizens were expected to default on their payments and risk deportation in the coming months, according to the data from the US Census Bureau. However, there are still options available when it comes to preventing evictions, including:
- Mortgage refinancing
- Federal aid
- Take out a personal loan
1. Mortgage refinancing: Homeowners who refinance their existing mortgage could see their monthly payments drop by the hundreds due to record interest rates. The FHFA also recently removed unfavorable refinancing fees from the market, which now saves homeowners an average of $ 1,400 in closing costs.
Rising house prices have raised equity levels, allowing many homeowners to withdraw their mortgage insurance and save an additional $ 100 to $ 200 on their monthly payment.
Due to the drastic housing market conditions spurred by COVID-19, even some homeowners who have missed their mortgage payments due to the pandemic could still qualify for refinancing. Visit Credible to see multiple mortgage lenders at once and see how much you could save.
2. Federal assistance for tenants and landlords: For tenants, the federal government helps tenants in financial difficulty. The Consumer Financial Protection Bureau (CFPB) has set up a website where they and owners can make a request to receive money funded by the US Department of the Treasury’s Emergency Rental Assistance Program. Mortgage giants Fannie Mae and Freddie Mac have also introduced low-income mortgage refinancing options.
Rent Assistance Program funds will be distributed by state and local organizations and can be used to help pay rent, utility bills, and moving expenses. The new CFPB rental aid search tool can help tenants find help near them.
3. Take out a personal loan: If tenants and landlords cannot take advantage of other options, a personal loan can be a beneficial resource. Interest rates are at record highs and can help residents catch up on non-payment of rents or new rents due.
Credible can show you several personal lenders who offer quick loans. Go now to compare rates and lenders and find a schedule that works for you.
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