FHA Issues FHA Mortgage Alert. FHA Directs Mortgage Servicers To Halt All Foreclosure Actions Until August 31st.
HUD has issued an FHA Mortgage alert. HUD announced FHA is extending its foreclosure and eviction moratorium through August 31, 2020. This is the second extension the FHA has enacted since the COVID-19 pandemic began. FHA issued its first extension on May 14th.
The foreclosure and eviction moratorium extension applies to homeowners with FHA-insured mortgages. The FHA hopes the extension will provide additional security and relief to homeowners attempting to financially recover from the current economic climate.
HUD Secretary Ben Carson said in a statement:
While the economic recovery is already underway, many American families still need more time and assistance to regain their financial footing. Our foreclosure and eviction extension means that these families will not have to worry about losing their home as they work to recover from the financial impacts of COVID-19.
The moratorium requires mortgage servicers to halt all new foreclosure actions. It also suspends all foreclosure actions currently in progress. In addition, the moratorium also directs servicers to cease all evictions of persons from FHA-insured Single-Family properties. However, the FHA moratorium extension excludes vacant and abandoned properties.
The two-month extension is not the FHA’s first temporary policy change to assist borrowers during COVID-19. The FHA enacted a policy shift aimed several weeks ago. The policy addressed borrowers who met all FHA requirements for a mortgage at the time of closing but were impacted by the pandemic before receiving an FHA endorsement.
The FHA does state that homeowners should continue to make their mortgage payments if they are able to do so. FHA also advised they also seek mortgage payment forbearance pursuant to the CARES Act from the mortgage servicer.