Foreclosure and Eviction Moratorium Extended for Single Family Homeowners


Posted On: June 18, 2020

In a HUD press release on Wednesday, June 17th, the Federal Housing Administration (FHA) announced that it is extending its foreclosure and eviction moratorium through August 31st for homeowners with FHA-insured Single Family mortgages. This two-month extension comes at a much needed time where homeowners are struggling to have peace of mind and financial security as they recover financially from the COVID-19 economic turmoil.

The moratorium extension is specifically for homeowners with FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages. 

“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.” – HUD Secretary Ben Carson

These Single Family homeowners with FHA-insured mortgages should continue to make their mortgage payments during the moratorium if they are able to do so. If they are not able to do so, they should seek mortgage payment forbearance pursuant to the CARES Act from their mortgage servicer.

Mortgage servicers are required, in accordance with the CARES Act, to:

  • Offer borrowers with FHA-insured mortgages up to a year of delayed mortgage payment forbearance when the borrower requests it. FHA does not require a lump sum payment at the end of the forbearance period.
  • Assess borrowers who receive COVID-19 forbearance for its special COVID-19 National Emergency Standalone Partial Claim before the end of the forbearance period. The COVID-19 National Emergency Standalone Partial Claim puts all deferred mortgage payment amounts owed into a junior lien which is only repaid when the borrower sells the home, refinances the mortgage, or the mortgage is otherwise extinguished.

Read the official press release.

Latest Posts



YOU MIGHT ALSO LIKE

What Relationship Managers Will Survey in Tenant Selection Plans

In this series of #TuesdayTips, Corporate Trainer Vickie Bell shares what Relationship Managers with Navigate will look for in Tenant […]

Read More

Tax Credits for Prospective Homebuyers

In an era where homeownership seems increasingly out of reach, President Joe Biden has taken bold steps to tackle the […]

Read More
ground cinnamon, ground cinnamon recall

Ground Cinnamon Recall

The FDA has identified several ground cinnamon products with elevated lead levels. Last month, we told you about the Cinnamon […]

Read More