New Disaster Bill Freezes Evictions for 120 Days, Halts Foreclosures for Six Months Post-Disaster

When a major disaster hits—think hurricanes, floods, or wildfires—the last thing anyone needs is the added stress of losing their home. The Federal Disaster Housing Stability Act of 2025 is designed to hit the pause button on housing insecurity right when people need stability the most. This bill immediately triggers two major protections in any area declared a disaster zone by the President or a Governor: a 120-day eviction moratorium and a six-month foreclosure moratorium (Sec. 2, Sec. 3, Sec. 4).

The Eviction Freeze: A 120-Day Breathing Room

For renters, this bill is straightforward: if you live in a covered dwelling in the disaster area, your landlord cannot evict you for nonpayment of rent or fees for 120 days starting from the date of the disaster declaration (Sec. 4). This means if you’re suddenly out of work because your office flooded, you don’t have to worry about being kicked out immediately. Furthermore, landlords are blocked from charging late fees, penalties, or even raising your rent during this four-month period to recoup losses (Sec. 2). The bill also ensures that if you had to temporarily evacuate, your landlord can’t block you from moving back in or force you to re-qualify for your lease. Once the 120 days are up, the landlord still has to give you at least 30 days' notice before they can officially move to vacate the property (Sec. 2).

Putting Foreclosures on Ice for Half a Year

Homeowners get an even longer break. For any "covered mortgage loan"—which includes most standard residential loans on properties up to four units—servicers cannot start or continue any foreclosure action for a full six months after the disaster declaration (Sec. 3, Sec. 4). This pause stops everything: setting a sale date, asking a court for a judgment, or carrying out an eviction related to foreclosure. If you’re busy dealing with insurance adjusters, contractors, and FEMA, you get a solid 180 days to figure out your finances without the threat of losing your home. There is one major exception: if the property was already considered vacant or abandoned before the disaster hit, the foreclosure freeze doesn't apply (Sec. 3). This is designed to prevent stopping the process on homes that were already empty.

The Cost of Stability: Who Pays the Tab?

While this bill provides crucial stability for tenants and homeowners, it’s important to look at the other side of the ledger. Landlords and mortgage servicers bear the immediate financial burden. For landlords, 120 days without rent—or the inability to charge late fees—can represent a significant hit, especially for smaller property owners who rely on that income to pay their own mortgages and maintenance costs. Similarly, mortgage servicers must halt collection efforts for six months. The bill provides the stability needed for recovery, but it also temporarily shifts the financial strain of the disaster onto the property owners and lenders who must wait for payments. The hope is that the protected time allows tenants and homeowners to access disaster aid and stabilize their income, ultimately preventing mass defaults and foreclosures down the line.