The Federal Housing Finance Agency (“FHFA”) recently extended its foreclosure moratorium on Fannie Mae and Freddie Mac loan servicers (which was set to expire on 06/30/2021) until 07/31/2021. What does this mean for community associations?
Because mortgage foreclosures (or “Trustee’s Sales” as they are known in Arizona) are an important indicator of future HOA delinquencies, the extended foreclosure moratorium is expected to have a positive impact on HOA delinquencies. As such, we strongly urge HOA Boards to pursue timely collection efforts in order to further increase the likelihood of collections. If HOA Boards continue to delay collection efforts until after expiration of the moratorium, the likelihood of successful collection efforts will be significantly reduced.
Please contact Mulcahy Law Firm, P.C. (602-241-1093 or info@mulcahylawfirm.com) for further assistance.
