Articles Tagged With: FHA Foreclosure

April 16, 2020

HUD Issues More Guidance For COVID-19 Mortgage Relief

The Department of Housing and Urban Development has issued guidance clarifying certain aspects of the coronavirus mortgage relief options; there are instructions for multi-family loans as well as for single-family FHA mortgages. Why are the multi-family rules good for the single-family borrower to understand? Borrowers with multi-family FHA loans who need of COVID-19 mortgage relief have similar requirements to those for single-family borrowers. If you know the approach your lender takes for FHA loans, you can make more fully informed choices about your loan including when to apply for economic relief and what options to choose. Borrowers have the option to request six months of loan forbearance or as much as a full year, depending on circumstances. Should you take the full year? Cut off the relief as soon as | more...

the importance of credit for home loan approval

April 14, 2020

Common Questions About COVID-19 Mortgage Relief For FHA Borrowers

By Bruce Reichstein

If you have an FHA mortgage and are worried about your ability to make mortgage payments during the economic shutdown over the coronavirus. What should you do? The FHA has some advice for you on taking advantage of the mortgage relief options provided by the FHA and HUD during the coronavirus pandemic. The FHA official site advises FHA borrowers to do three things if you are able: Continue to make your monthly mortgage payments if you are able to do so; If you are unable to make your mortgage payment, contact your mortgage servicer and discuss your situation with a loss mitigation specialist. Contact a HUD-approved housing counseling agency (you can get a referral by calling 1-800 CALL FHA). Have you lost your job? Have you been laid off, furloughed | more...

April 13, 2020

Are You In Trouble On Your FHA Mortgage Loan?

By Joe Wallace

Are you having trouble making your FHA home loan payments? Is the coronavirus emergency made it financially difficult to stay current on your mortgage loan? There have been a variety of relief measures proposed and announced, but many of them are more general types of assistance. The FHA and HUD published an announcement discussing COVID-19 related mortgage relief for FHA borrowers affected by the coronavirus outbreak. This relief is specifically for those with mortgage loans guaranteed by the FHA including mortgages, reverse mortgages, etc. These measures were a welcome development for many FHA mortgage borrowers, but it is crucial for home owners to understand that until you contact your loan servicer, you cannot assume it’s safe to delay payments. You MUST make arrangements with your lender to claim the mortgage | more...

April 10, 2020

Protect Your FHA Home Loan From Foreclosure

By Bruce Reichstein

The federal government has offered a variety of economic stimulus programs to help those affected by COVID-19 and the coronavirus emergency. FHA, VA, and USDA lenders have been given updated instructions to help borrowers avoid loan default and foreclosure. Those instructions include a temporary foreclosure moratorium and options to help borrowers stay in their homes through loan modification and loan forbearance. Such alterations to the mortgage are designed to help borrowers avoid falling behind or falling farther behind on their mortgages. But what happens after these measures? FHA has announced something known as the COVID-19 National Emergency Partial Claim, described by an FHA/HUD press release as “an option to be used by servicers” once the COVID-19 FHA loan forbearance period concludes. Borrowers who have trouble paying their mortgages during COVID-19 | more...

April 9, 2020

FHA Announces Updated COVID-19 Guidance For Participating Lenders

By Joe Wallace

The FHA and HUD have announced policy changes to the FHA Single-Family home loan rulebook, HUD 4000.1. These changes were announced in FHA Mortgagee Letter 2020-06 and address loss mitigation procedures specifically for COVID-19 related economic hardship. The prior version of HUD 4000.1 did not include specific guidance for lenders trying to help borrowers avoid foreclosure due to coronavirus issues; the old instructions are updated to include policies for lenders to help borrowers via CARES Act measures signed into law to help struggling companies and workers. The new additions to HUD 4000.1 include a new Section addressing the “Presidentially-Declared COVID-19 National Emergency” guidance for lenders, which is effective immediately takes precedence over disaster relief guidance issued prior to the pandemic. FHA loan rules for presidentially declared major disaster areas in | more...

April 2, 2020

HUD Announces New Mortgage Relief Options For FHA Borrowers Affected By COVID-19

By Joe Wallace

The coronavirus emergency has created difficult financial times for most Americans. Many wonder where they will find the money to meet their financial obligations including mortgage payments. Those who have FHA home loans should contact their loan servicers right away due to the latest round of coronavirus relief measures aimed at helping FHA borrowers save their homes from loan default and eventual foreclosure. The Department of Housing and Urban Development has provided a new coronavirus mortgage relief package for FHA borrowers above and beyond the original 60-day foreclosure moratorium issued previously. If you have an FHA mortgage, refinance loan, or One-Time Close Construction mortgage and are experiencing financial hardship as a result of the COVID-19 outbreak, you may qualify for certain relief measures that took effect April 1, 2020. Borrowers | more...

April 1, 2020

HUD Advice For Saving Your Home During The Coronavirus

By Bruce Reichstein

Are you worried about protecting your home from foreclosure during the coronavirus outbreak? The FHA and HUD official site now features a section dedicated to consumers who need advice about foreclosure avoidance, what to do if they fall behind on mortgage payments, and other advice for dealing with FHA mortgages, reverse mortgages, and FHA refinance loans during the coronavirus pandemic. FHA lenders have been asked by the Department of Housing and Urban Development, ”to use reasonable judgment” when trying to decide who is legitimately affected by coronavirus-related job loss and income interruption for the purpose of evaluating the loan. There is a real danger in this difficult time that FHA borrowers could lose their homes if there are missed payments, loan default, etc. The potential risks to a home in | more...

March 26, 2020

Mortgage Industry Seeks Federal Relief For Borrowers

By Joe Wallace

The coronavirus pandemic created financial chaos across the globe; America is on the verge of a massive financial bailout for consumers and industry to the tune of $2 trillion or more. States, lenders, and the federal government all have a keen interest in helping homeowners avoid financial crises, loan default, and foreclosure. And now the mortgage industry has rallied to petition the White House for funds to assist homeowners. On March 24, 2020, HousingWire.com ran a press release discussing a letter sent to the White House asking for mortgage relief for borrowers including delayed payments and interest. The proposal includes the following benefits: A 90-day delayed payment option for mortgage payments; A proposed one-year loan forbearance period; Payment forbearance protections such as no negative credit reporting or collections; Introducing reduced | more...

March 23, 2020

Don’t Fall Victim To Mortgage Default And Foreclosure During The Coronavirus

By Bruce Reichstein

Are you worried about losing your home during the financial trouble caused by COVID-19 and the global coronavirus outbreak? There are some important steps you can take to save your home and avoid foreclosure. FHA borrowers should know that the FHA and HUD have issued a 60-day moratorium for eviction and foreclosure action associated with FHA mortgages. But that is a TEMPORARY delay and borrowers should not expect to avoid foreclosure without making arrangements with their lender. If you are in trouble with your mortgage, there are important steps you can take to avoid foreclosure after the 60-day delay in FHA loan foreclosure action has expired. What are they? Contact your lender as soon as you know you are having financial trouble. Make arrangements with your loan officer and see | more...

March 20, 2020

How To Avoid Foreclosure During The Coronavirus

By Joe Wallace

Are you afraid of losing your home due to diminished income or a lack of income related to closures, furloughs, and layoffs due to coronavirus prevention? The global pandemic caused by the coronavirus has created major financial problems and governments worldwide struggle to control the damage. Mortgage rates have fluctuated wildly between incredible lows and one-year highs, the Fed has made emergency interest rate cuts, and hundreds of companies have been forced to endure waves of closures or reduced hours. Affording your mortgage payment in times like these is difficult; it’s easy to fall behind on your financial obligations. Do you know what to do if you are in danger of being late or missing a mortgage payment on your FHA home loan? Act Now To Avoid More Financial Damage | more...