HUD put out a release announcing that it is suspending all foreclosures and evictions for the next 60 days in response to the COVID-19 crisis.
Secretary Ben Carson, in consultation with the Trump Administration and the Coronavirus Task Force, [yesterday] authorized the Federal Housing Administration (FHA) to implement an immediate foreclosure and eviction moratorium for single-family homeowners with FHA-insured mortgages for the next 60 days. (HUD No. 20-042)
Per Secretary Carson, the measure was taken to ensure that those who have an FHA-insured mortgage can meet the challenges of the ongoing COVID-19 crisis without the fear of losing their house and to help steady market concerns.
“Today’s actions will allow households who have an FHA-insured mortgage to meet the challenges of COVID-19 without fear of losing their homes, and help steady market concerns. The health and safety of the American people is of the utmost importance to the Department, and the halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times.”HUD No. 20-042, HUD Secretary Ben Carson
The guidance issued today applies to homeowners with FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages, and directs mortgage servicers to:
- Halt all new foreclosure actions and suspend all foreclosure actions currently in process
- Cease all evictions of persons from FHA-insured single-family properties.
This is an uncertain time for many Americans, particularly those who could experience a loss of income. As such, we want to provide FHA borrower households with some immediate relief given the current circumstances.HUD No. 20-042, Federal Housing Commissioner Brian Montgomery
The FHA is encouraging servicers to offer its suite of loss mitigation options to distressed borrowers. This is in an effort to help prevent them from going into foreclosure. The options include short and long-term forbearance options, mortgage modifications, and other mortgage payment relief options available based on the borrower’s individual circumstances.
Read the HUD release here.