One of the most significant facets of the economic crisis caused by the COVID-19 pandemic in the United States has to do with the huge number of people unable to afford their rents and mortgage payments.
With the goal of preventing millions of Americans from becoming homeless, and averting a widespread crisis in the real estate sector, Joe Biden’s administration announced Tuesday the extension until the end of June of the moratorium on foreclosures and foreclosures.
In this way, those who are late with their payments will be able to enroll in the federal program to prevent their homes from being foreclosed by banks.
The benefit can be extended even until the end of the year, because the program grants an additional six months to those who commit to finding a means of payment.
The announcement is an extension of a plan implemented by the Donald Trump administration in March 2020, which has been running for a year. One of 17 bills Biden signed on his first day as president had extended the program until March of this year. Today the news is that it will last until at least June 30.
The Department of Housing and Urban Development, along with the Department of Veterans Affairs and the Department of Agriculture, developed the program to help as many Americans as possible.
According to the White House, 70% of current single family home mortgages would be covered under this moratorium.
Currently there are 2.7 million owners registered in the moratorium. It is estimated that up to 11 million could benefit from the program. Although this is executed through each bank or credit agency individually, the federal order covers all mortgage loans in the country.
But the problem is not only those who are not being able to pay their mortgages, but the millions of people who are not in a position to afford the rent either. According to data provided by the White House, 1 in 5 tenants is in this condition.
In December, the federal government granted USD 25 billion to municipalities across the country to be used in rental assistance programs. Cities like Miami, for example, received $ 14 million for such relief.
The city of the sun announced today that with that money they will deliver up to one year of rent and payment of services (such as electricity) to families who have lost their jobs, or seen their income decreased, as a consequence of the pandemic.
Those who qualify can receive up to $ 24,000 for one year to avoid being evicted. The requirements indicate that they must be city residents, demonstrate loss or decrease of income during the pandemic, have income that does not exceed 80 percent of the city average.
Those who have not paid their rent for at least 90 days will have priority. The idea is not only to help the tenants, but also the owners, who in turn are behind with their own mortgages for not collecting rents.
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