Millions of homeowners with FHA mortgages in need of mortgage relief during the coronavirus pandemic are getting an extension on their options to avoid foreclosure.
That is thanks to a recent move by the Department of Housing and Urban Development; the agency has announced an extension to coronavirus relief measures intended to help borrowers financially affected by COVID-19.
FHA and HUD official sites announced this week that they have approved a two-month extension to the COVID-19 related foreclosure and eviction moratorium.
The new expiration date for the moratorium is listed as February 28, 2021.
There is now more time for FHA borrowers to request what the FHA calls an “initial COVID-19 forbearance” which must be obtained from the borrower’s mortgage servicer.
This forbearance is meant to “defer or reduce” FHA mortgage payments for up to six months. That initial six months can also be extended for an additional six months.
The FHA and HUD have also announced extended multiple temporary provisions for lenders and servicers to allow them to continue doing FHA business despite social distancing considerations.
This is the fourth such extension on such relief measures and is applicable for all FHA mortgages except for buildings that are considered abandoned or “legally vacant”.
FHA officials have gone on the record about this extension saying the measures “ensure American homeowners continue to have the critical relief and support they need” while trying to get back to pre-pandemic economic footing.
“FHA will continue to assist borrowers who are struggling to regain their financial footing as a result of this pandemic. American homeowners should not be forced from their homes while they are seeking help,” said Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade, who was quoted in the mortgagee letter.
The FHA and HUD have taken additional measures to facilities the FHA home loan process using social distancing measures and other steps intended to help the home loan process continue for FHA lenders.
The FHA and HUD have extended timeframes for providing an insurance endorsement on single-family mortgages in forbearance through March 31, 2021, there are provisions for temporary re-verification of employment guidance and exterior-only appraisal inspection options extended through February 28, 2021.
And there are also temporary provisions for verification of self-employment, rental income, and 203(k) Rehabilitation Mortgage escrow accounts extended through February 28, 2021.
Any FHA borrower struggling to make payments should contact their loan servicer immediately and if you need more additional information on available options to save your home from loan default and foreclosure, consider the FHA’s COVID-19 Resources for Homeowners. You should also contact your loan officer for more information on your options.