EXPLAINER: What happens after foreclosure moratorium ends

Since early 2020, banks across the U.S. have been banned from foreclosing on homes as part of the federal government’s efforts to assist families feeling economic pain caused by the pandemic

NEW YORK -- Since early 2020, banks across the U.S. have been banned from foreclosing on homes as part of the federal government’s efforts to assist families feeling economic pain caused by the pandemic. On Saturday, the ban will end, potentially putting thousands of families at risk. Much like the federal eviction moratorium for rental units, it has been extended several times. The scale of the potential problem is much less than the Great Recession, but it’s still worrisome. An estimated 1.75 million homeowners — roughly 3.5% of all homes — are in some sort of forbearance plan with their bank, according to the Mortgage Bankers Association. By comparison, about 10 million homeowners lost their homes to foreclosure after the housing bubble burst in 2008. ———