FHA And HUD Announce New Foreclosures Aid Measures For These Lately Affected By COVID-19
The Department of Housing and Urban Development has announced new COVID-19 relief measures for those with FHA mortgages.
This message follows a previously issued FHA mortgage letter, ML2021-19, “Extension of Moratorium on Foreclosure and Expiration of Moratorium on Foreclosure Associated with President-Declared COVID-19 National Emergency,” which contained the following: Opinion:
“The moratorium on HUD foreclosure expires on July 31, 2021, and HUD is not extending this moratorium any further”. This statement applies to many; FHA and HUD added more help, but it’s for those with experience youngest financial difficulties due to COVID-19.
For those who have already taken advantage of this help, the loan deferral offered borrowers a chance to save their homes even during the ongoing financial crisis caused by COVID.
But what about those who have since bought homes or have done so in the past but are only now affected by the pandemic in ways that affect regular mortgage payments?
On September 27, 2021, the FHA and the HUD issued new guidelines announcing expanded COVID-19 assistance options; those recently affected are being targeted for FHA omission options.
This relief applies to both “borrowers who have recently struggled to make their mortgage payments due to the pandemic,” and, according to the official HUD website, “elderly homeowners with Home Equity Conversion Mortgages (HECMs) who need help to get around to stay in their homes in life ”.
The FHA / HUD press release mentions several options, including a new FHA loan deferral or an HECM extension for those “new to the global coronavirus health emergency”. According to the new guidelines;
The FHA is now offering borrowers who apply for an initial COVID-19 forbearance or HECM extension from their mortgage administrator between October 1, 2021 and the end of the national COVID-19 emergency, up to six months of COVID-19 forbearance .
But that’s not all – FHA and HUD are also offering six months of additional deferral as part of the updated plan “for borrowers who have applied for an initial COVID-19 forbearance or HECM extension from their mortgage administrator between July 1, 2021 or will apply. and September 30, 2021, granting these borrowers a maximum of 12 months of COVID-19 forbearance or HECM extension. “
If you are in arrears with your mortgage payments or are struggling to meet FHA Home Equity Conversion Mortgage (HECM) terms, contact your loan service provider as soon as possible to arrange a deferral or other home rescue measure.