Congress fails to pass eviction moratorium extension, but homeowners and renters still have options
Congress failed to pass an extension to the freeze on evictions Friday before heading into its summer recess. But, homeowners and renters who are struggling to make payments still have options. (iStock)
Congress failed to pass a bill over the weekend that would have extended federal eviction protections past their July 31 deadline.
This comes after the Federal Housing Finance Agency (FHFA), Federal Housing Administration (FHA) and the Department of Veterans Affairs each announced last week that their coronavirus pandemic-driven eviction moratoria will be extended through Sept. 30, 2021. The extensions will protect those in homes with federally backed mortgages and government-sponsored rent programs
The Center for Disease Control (CDC) had previously instated an eviction freeze in September of 2020 to help stop the spread of COVID-19; the agency extended the freeze twice for individuals who earned less than $99,000 in 2020 and joint-filing couples who earned less than $198,000.
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After a Supreme Court ruling in June made it clear the CDC couldn't extend the ban again, it was up to Congress to pass a bill if it wanted to continue the eviction moratorium. But with many moderate Democrats and Republicans opposing an extension, Congress was unable to secure enough votes needed to extend the freeze before August.
"It is extremely disappointing that House and Senate Republicans have refused to work with us on this issue," House Speaker Nancy Pelosi, Majority Leader Steny Hoyer and Majority Whip James Clyburn said in a joint statement. "We strongly urge them to reconsider their opposition to helping millions of Americans and instead join with us to help renters and landlords hit hardest by the pandemic and prevent a nationwide eviction crisis."
If making rent payments has become a hardship and you're now at risk of eviction, you may want to consider taking out a personal loan. When you begin shopping around, Credible can do the heavy lifting for you. With the click of a button, you can view multiple lenders, rates, and terms in one spot. Get a jump start on your personal loan shopping today.
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Biden requests eviction suspension
The bill, introduced by Rep. Maxine Waters (D-Calif.), would have extended the federal eviction freeze to October 18th, a move that President Joe Biden's administration said was necessary amid the increased spread of COVID-19 due to its Delta variant.
"Congress has the power to direct the CDC to extend the eviction moratorium to provide relief, as we encourage state and local governments to distribute the money that we allocated," Pelosi said in an email to House Democrats on Friday. But Congress ended the week without securing the votes needed to extend the temporary halt and went into its summer recess, making it unlikely that a bill will pass in the upcoming week.
Congressional Democrats criticized Biden's administration for waiting until the last minute to request the extension, saying it didn't leave enough time for them to come together 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 this past May. Half of those citizens were expected to default on their payments and face eviction in the coming months, according to data from the U.S. Census Bureau. But, there are still options available when it comes to eviction prevention, including:
- Mortgage refinancing
- Federal aid
- Taking out a personal loan
1. Mortgage refinancing: Homeowners who refinance their existing mortgage could potentially see their monthly payments drop by hundreds due to record-low interest rates. The FHFA also recently removed the adverse market refinance fee, which now saves homeowners an average of $1,400 in closings costs.
Rising home prices have brought equity levels higher, enabling many homeowners to remove their mortgage insurance and save $100 to $200 more on their monthly payment.
Due to the drastic housing market conditions spurred by COVID-19, even some homeowners who have missed mortgage payments due to the pandemic could still qualify for a refinance. Visit Credible to view multiple mortgage lenders at once and see how much you could save.
2. Federal aid for renters and homeowners: For renters, the federal government is helping tenants who have fallen on financial hardships. The Consumer Financial Protection Bureau (CFPB) introduced a website through which they and landlords can apply to receive money funded by the U.S. Department of the Treasury’s Emergency Rental Assistance program. Mortgage giants Fannie Mae and Freddie Mac, too, have introduced low-income mortgage refinance options.
The Rental Assistance program funds will be distributed by state and local organizations and can be used to help pay rent, utility bills and moving costs. The CFPB’s new rental assistance finder tool can help renters find assistance close to them.
3. Taking out a personal loan: If renters and homeowners are unable to take advantage of other options, a personal loan might be a favorable resource. Interest rates are at record lows and can help residents catch up on non-payments of rent or new rent due.
Credible can show you several personal loan lenders that offer quick loans. Head there now to compare rates and lenders and find a timeline that works for you.
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