Definition of "Moratorium"

Norma L. Rodriguez, PA <br> Broker Associate real estate agent
Norma L. Rodriguez, PA
Broker Associate, Real Estate Agent
Berkshire Hathaway Florida Realty

  1. Delay permitted to repay an obligation. An example is when a financial institution allows a real estate company another month to repay the balance due a loan.
  2. Delay permitted to carryout a legal responsibility. An example is when a homeowner gives the contractor another two weeks to complete work beyond the contract completion date.
  3. Period of time that specified performance is not permitted. For example, a homeowner does not allow work to be done on his home during the Jewish holidays.

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Comments for Moratorium


Melody A Queen Melody A Queen said:

If there is a moratorium on a lot for sale, what does that mean? If I buy the lot am I now responsible for the debt owed if any is owed?

Feb 17, 2020  02:55:06

 
Real Estate Agent

Hey, Melody! Think of a moratorium like a grace period. A period of time during which borrowers don’t have to pay their monthly installments, credit card dues, or loans. Note that it’s not a waiver so it will most likely end up in a higher interest rate after the payments are resumed. So, the moratorium doesn’t refer to unpaid debt. For example, during the COVID-19 outbreak, some banks and financial institutions offered a few moratorium months for term loans and credit card bills. We also have some advice on our website on how to sell your home during a pandemic so if you’re interested, you can check it out.

Apr 09, 2020  13:24:15
 

 

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