The 60-Day Trump Foreclosure Moratorium Does Not Apply To All Mortgages. Non-GSE Loans And Non-FHA Loans Not Part Of The Moratorium
The 60-Day Trump Foreclosure Moratorium that President Trump announced Wednesday applies to most but not all mortgages. President Trump announced HUD is suspending all foreclosures and evictions for 60 days.
The HUD foreclosure and eviction moratoriums are for all single-family homeowners with FHA-insured mortgages.
That matches the policy announced Wednesday by FHFA regarding Fannie Mae and Freddie Mac mortgages. FHFA oversees Fannie Mae and Freddie Mac.
The FHFA moratorium includes foreclosures and evictions on all single-family mortgages backed by Fannie Mae or Freddie Mac.
The FHA foreclosure moratorium applies to homeowners in Title II Single Family forward programs. The moratorium also includes all HECM mortgages aka Reverse Mortgages.
The HUD announcement directs mortgage servicers to halt all new foreclosure actions and suspend all foreclosure actions currently in process. HUD also demanded servicers to cease all evictions on FHA-insured single-family properties.”
Earlier this month, the FHFA and HUD reminded mortgage servicers of their options for borrowers affected by the COVID-19 outbreak.
Both FHFA and FHA included among those options like payment forbearance and loan modifications. These options would allow affected borrowers to suspend their mortgage payment for up to 12 months due to hardship caused by the coronavirus.
The FHFA and FHA also stated that it is encouraging servicers to offer loss mitigation options to distressed borrowers.
According to both FHFA and FHA, those options include short and long-term forbearance options, mortgage modifications, and other mortgage payment relief options available based on the borrower’s individual circumstances.
However, the 60-Day Trump Foreclosure Moratorium does not apply to loans not backed by Fannie Mae, Freddie Mac or FHA. Sub-prime loans or Option-ARM loans are not included in the moratorium. Check with your mortgage servicer or call MFI-Miami today. We’ll research it for you.