During the COVID-19 pandemic, millions of Florida homeowners benefited from foreclosure moratoriums that temporarily halted the foreclosure process. These protections came from both federal legislation (the CARES Act) and state-level court orders from the Florida Supreme Court. Understanding what those protections were, when they expired, and what safeguards remain is essential — especially if you fell behind during the pandemic and are now facing foreclosure as a result.
The CARES Act Foreclosure Moratorium (2020-2021)
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. Section 4022 of the Act provided two key protections for homeowners with federally backed mortgages:
Protection 1: Foreclosure Moratorium
The CARES Act prohibited mortgage servicers of federally backed loans from initiating or advancing foreclosure proceedings. “Federally backed” included mortgages owned or guaranteed by:
- Fannie Mae (Federal National Mortgage Association)
- Freddie Mac (Federal Home Loan Mortgage Corporation)
- FHA (Federal Housing Administration)
- VA (Department of Veterans Affairs)
- USDA (Department of Agriculture)
This moratorium was initially set to expire on May 17, 2020, but was extended multiple times through executive action and agency directives. The final extension set the moratorium expiration at July 31, 2021.
Protection 2: Forbearance
The CARES Act gave homeowners with federally backed mortgages the right to request forbearance — a temporary pause or reduction in mortgage payments — for up to 180 days, with the option to extend for an additional 180 days. Later guidance extended the total forbearance period to up to 18 months.
During forbearance, the servicer could not charge late fees, report negative information to credit bureaus, or initiate foreclosure. However, forbearance did not forgive the missed payments — they still needed to be addressed after the forbearance period ended.
Florida Supreme Court Administrative Orders (2020)
In addition to the federal protections, the Florida Supreme Court took its own action to address the pandemic's impact on the court system and homeowners:
- AOSC20-23 (April 2, 2020) — Suspended all time requirements in civil cases, including foreclosures. This effectively paused the foreclosure process statewide by preventing courts from moving cases forward on their normal timelines.
- Multiple extensions through 2020 — The Florida Supreme Court extended the suspension multiple times as the pandemic continued, with modifications allowing limited case processing.
- Managed reopening (late 2020-2021) — Courts gradually resumed foreclosure proceedings with modified procedures, including virtual hearings and phased docket management.
The Florida Supreme Court orders were separate from the CARES Act and applied to all foreclosure cases in state court — not just federally backed mortgages. This provided broader protection for Florida homeowners during the early months of the pandemic.
What Happened When the Moratoriums Expired
When the moratoriums expired in 2021, the foreclosure floodgates did not immediately open. Several factors slowed the return to normal foreclosure activity:
- Loss mitigation review requirements — Federal agencies required servicers to evaluate borrowers for all available loss mitigation options before proceeding with foreclosure. This included loan modifications, repayment plans, partial claims, and deferrals.
- Florida Emergency Rental Assistance— Federal funds distributed through Florida's emergency assistance programs helped some homeowners catch up on missed payments.
- Court backlogs — Florida courts had accumulated significant case backlogs during the suspension period, which slowed the processing of new and existing foreclosure cases.
- Housing market appreciation — Rising home values meant many homeowners had equity, giving them the option to sell rather than face foreclosure.
However, by 2022 and 2023, foreclosure filings began increasing as the protections fully expired and forbearance periods ended. Homeowners who had been in forbearance but could not resume payments or qualify for a modification entered the foreclosure pipeline.
Post-COVID Forbearance Exit Options
When CARES Act forbearance ended, homeowners were supposed to be evaluated for exit options — ways to resolve the missed payments without going directly to foreclosure. The available options depended on the loan type:
| Option | How It Works |
|---|---|
| Reinstatement | Pay all missed payments in a lump sum |
| Repayment plan | Add a portion of missed payments to each monthly payment over time |
| Loan modification | Change loan terms to reduce payment and add arrears to the loan balance |
| Partial claim (FHA/VA) | Missed payments placed in a separate lien due when you sell or refinance |
| Payment deferral | Missed payments moved to the end of the loan, due at maturity or payoff |
If you exited forbearance and could not resolve the missed payments through any of these options, your servicer may have eventually begun the foreclosure process. If you are in this situation now, you still have rights — including the right to apply for loan modification and the right to file an answer to the foreclosure complaint.
What Protections Still Exist Today?
Barrett Henry, a REALTOR with 23+ years of real estate experience and Broker Associate at REMAX Collective, wants Florida homeowners to know that even without a moratorium, significant protections remain:
- CFPB mortgage servicing rules — Your servicer must wait 120 days after your first missed payment before filing for foreclosure. They must make reasonable efforts to contact you about loss mitigation options. They cannot dual-track (pursue foreclosure while evaluating a complete loss mitigation application).
- Florida judicial foreclosure rights — You have the right to be served, file an answer, raise defenses, request mediation, and participate in every stage of the court process.
- Loss mitigation at any stage — You can apply for a loan modification or other workout option at any point during the foreclosure process.
- HUD-approved counseling — Free housing counseling is available to help you navigate your options and communicate with your servicer.
- Right to sell — You can sell your home at any point before the auction, including through a short sale if you are underwater.
Will There Be Another Foreclosure Moratorium?
There is no indication that another broad foreclosure moratorium will be enacted absent a crisis comparable to COVID-19. The pandemic moratoriums were emergency measures in response to an unprecedented economic shutdown. They were always intended to be temporary.
If you are waiting for a new moratorium to save you from foreclosure, do not count on it. Instead, take action now with the protections and options that currently exist. The earlier you act, the more choices you have — and the better the outcome is likely to be.
Facing foreclosure after a pandemic forbearance? Contact us today for a free consultation — no cost, no obligation.