With millions of Americans out of work and struggling to pay their rent, the federal government is offering landlords a break in the hopes it will avert a tidal wave of evictions.
The Federal Housing Finance Agency announced on Monday that landlords with government-backed mortgages are eligible for an additional three months of mortgage forbearance—provided they don’t evict tenants who can’t pay their rent during that time. The initial forbearance period, in which building owners suffering coronavirus-related hardships could put off their mortgage payments, was about to expire for those who had sought assistance at the start of the pandemic. The extension is designed to trickle down to renters by taking the pressure off landlords who are on the hook for their own monthly mortgage payments.
The forbearance is only for owners of multifamily properties of five or more units who have mortgages backed by Fannie Mae and Freddie Mac.