May 19, 2009- As part of the Obama Helping Families Save Their Homes Act of 2009, Congress provided guidance to loan holders, servicers, and homeowners in dealing with potential foreclosure or a foreclosure moratorium.
The legislation provides that Congress feels that lenders and servicers of mortgages should not start foreclosure proceedings or foreclosure sales on a homeowner’s primary residence until the foreclosure provisions of the recent plans have been fully implemented.
Congress also states that they feel that the homeowner should also keep a home that may be in foreclosure in good repair, not allow damage to occur to the property, and should respond to the servicer or holder of their loan to requests during this foreclosure moratorium.
Homeowners should beware because this is not a federal foreclosure moratorium, but only sets out the general feelings of the US Congress and duties they think should be imposed. Your lender or servicing company can and will still move forward with foreclosure, so you must act to save your home. These are just guidelines and recommendations. Do not assume this foreclosure moratorium discussion bans lenders from foreclosure, trustee sales, or evicting you from your home!