Articles Tagged With: Foreclosure

August 19, 2021

Time Is Running Out On The HUD Foreclosure Eviction Moratorium

The end of the HUD foreclosure moratorium was announced earlier this year–the end date of the moratorium is listed as July 31, 2021. That date is firm, at least according to the most recent FHA Mortgagee Letter published on this issue, which mentions, “foreclosures of FHA-insured mortgages may be initiated or resumed upon the expiration of the foreclosure moratorium in accordance with FHA requirements.” The July 31st deadline is, at this time, not expected to be extended further. However, there is also a moratorium on foreclosure-related evictions for FHA borrowers who are in default on their mortgages. That eviction moratorium has been extended until September. HUD instructions to participating FHA lenders is clear. The Mortgagee Letter on the FHA/HUD official sites includes these guidelines: “A Mortgagee must not initiate or | more...

August 9, 2021

Do You Need Help Saving Your FHA Mortgage?

By Joe Wallace

Do you worry about your ability to make payments on your FHA home loan? You are not alone, and the FHA and HUD want to help. There have been many foreclosure prevention measures taken by lenders and the FHA/HUD alike including a COVID-19 related foreclosure moratorium, loan modification options for qualifying applicants and much more. In early 2021, the FHA and HUD announced “loss mitigation options” to help those recovering financially from the pandemic; these included a COVID-19 Advance Loan Modification offered to “…eligible delinquent Borrowers who can achieve a 25 percent reduction to the Principal and Interest (P&I) portion of the Borrower’s monthly mortgage payment through a 30-year rate and term loan modification” according to HUD.gov The FHA and HUD continue evaluating how the pandemic has affected the agency’s | more...

July 9, 2020

FHA and HUD Announce Even More Home Loan Relief Options For Qualifying Home Owners

By Joe Wallace

Millions of home owners were affected by a loss of income and employment at the start of the COVID-19 outbreak in America. And there was a lot of money on the table in the form of mortgage relief and stimulus payments, but what happens when the stimulus money is gone and the borrower gets to the end of a home loan forbearance period? The FHA and HUD have announced extended relief for FHA borrowers -relief specifically designed to help those who applied for FHA loan forbearance. A press release titled, “FHA Expands Home Retention Measures For Homeowners Financially Impacted By Covid-19” announces the measures, which are meant to help home owners bring their mortgage up to date at the end of the loan forbearance period. As of July 8, 2020, | more...

June 19, 2020

FHA And HUD Announce Extended Foreclosure Relief

By Joe Wallace

Are you a homeowner with an FHA loan worried about your mortgage during the coronavirus pandemic? If so, you aren’t alone. Coronavirus outbreak containment policies–lockdowns, quarantines, and other necessary measures, have brought with them economic hardship from many Americans; loss of income creates and questions about future earnings can result in late and missed mortgage payments, increasing the risk of foreclosure. But during the pandemic, federal relief measures were drafted to help–and the FHA/HUD is no exception, requiring participating lenders to delay initiating or continuing foreclosures during the crisis. Now, the Department of Housing and Urban Development and the Federal Housing Administration have issued an extension (actually the second extension since the crisis began) of the foreclosure moratorium announced in March. The Old Deadline Wasn’t Sufficient The HUD official site | 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 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...

the importance of credit for home loan approval

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...

March 19, 2020

HUD Begins Foreclosure Relief For FHA Borrowers Affected By The Coronavirus Outbreak

By Bruce Reichstein

The Department of Housing and Urban Development is providing FHA borrowers a 60-day foreclosure moratorium described as “immediate relief” for those who may be struggling to make FHA mortgage loan payments during the health crisis. Details From HUD The HUD official site has published details of the HUD-mandated moratorium on all foreclosures on FHA Single-Family home loans and Reverse Mortgages, a move similar to what happens to borrowers in federally-declared disaster areas after a natural disaster such as a hurricane, flood, forest fire, landslide, etc. FHA Mortgage Foreclosure Evictions Also Suspended The HUD foreclosure moratorium announcement includes a suspension of evictions related to those foreclosures, also for sixty days. The eviction process suspension is a critical part of foreclosure relief for some borrowers. The HUD official site’s press release addresses | more...

April 17, 2019

Can I Buy A Home With An FHA Mortgage After Foreclosure?

By Joe Wallace

After a major negative credit event like a foreclosure, some home owners assume they may never be able to get a lender to take them seriously for a home loan ever again. Is this true? At first glance, FHA home loan rules in HUD 4000.1 might lead a potential borrower to think that it is. “A Borrower is generally not eligible for a new FHA-insured Mortgage if the Borrower had a foreclosure or a DIL of foreclosure in the three-year period prior to the date of case number assignment.” The abbreviation DIL stands for deed-in-lieu of foreclosure. Note that the above does NOT say the borrower can NEVER get a home loan again. There is a three-year waiting period required but it IS possible. And later in HUD 4000.1, we | more...