September 17, 2021

MP Now News

Mortgage News

FHA Extends Eviction Moratorium For Foreclosed Loan Borrowers

The Federal Housing Administration (FHA) has one today renewal its moratorium on evictions for excluded borrowers and their residents up to the age of 30

The enlargement is part of President Biden’s Announcement on July 29th that federal agencies will use their powers to extend their respective eviction moratoriums until the end of September, which will continue to protect households living in federally insured single-family homes.

The extension of the FHA’s eviction moratorium will prevent the eviction of foreclosed borrowers and other residents who may need more time to access suitable housing after the foreclosure.

“We must continue to do everything in our power to ensure that foreclosed borrowers affected by the pandemic have the time and resources to secure safe and stable housing, whether in their current homes or by they will get alternative housing, ”said Lopa Kolluri, assistant assistant secretary for housing. “We don’t want individuals or families to be unnecessarily displaced while trying to recover from the pandemic.”

With today’s announcement, mortgage servants must continue to halt evictions on FHA Single Family Title II Forward and Home Equity Conversion Mortgage (HECM) properties, with the exception of properties that are legally vacant or abandoned.

An FHA forward mortgage allows a borrower to apply for funds for the purchase of the home with options to finance the home Mortgage insurance premium in advance and, if necessary, certain approved corrections required by the appraiser.

Mortgage servants may initiate or resume foreclosures in accordance with FHA requirements once the moratorium on single-family foreclosures expires on July 31, 2021 as planned, but will not be able to evict a foreclosed borrower or other resident.

The FHA urges those who are behind with their mortgage payments or are having difficulty meeting the terms of their reverse mortgage or home conversion mortgage to do so immediately.

By contacting their servicer, borrowers can obtain a mortgage deferral or HECM extension. For FHA Forward Mortgages, the FHA also urges borrowers to contact their mortgage administrator if they can tell you about the new Covid-19 Advance Loan Modification or how to update their mortgage. contacted. As part of the Covid-19 ALM program, eligible borrowers receive a reduction in the principal and interest portion of their monthly mortgage payment by at least 25%.

Borrowers looking for more information on the options available to them should also consider contacting a HUD approved. to turn Housing advice center.