FHA Mortgages

The Last Month Of The COVID-19 FHA Foreclosures Eviction Moratorium

the-last-month-of-the-covid-19-fha-foreclosures-eviction-moratorium

September 1, 2021 marks the start of a countdown – the final days of the FHA moratorium on forced evictions, enacted to help FHA borrowers avoid loan defaults and foreclosures during the economic hardship of the global COVID-19 pandemic.

There were two FHA-wide orders during the pandemic.

One was a foreclosure ban on homes secured on an FHA mortgage and the other was an eviction-related moratorium for those with FHA mortgages who were in foreclosure at the time of the pandemic.

The moratorium on FHA foreclosures ended in July 2021, but the eviction ban was extended to the end of September 2021. On July 30, 2021, the FHA and the HUD issued a notice to this effect that included:

“Foreclosure-related evictions of people from real estate secured by FHA-insured single-family mortgages, with the exception of legally undeveloped or abandoned real estate, will be suspended until September 30, 2021.”

The agency adds, “A mortgagee may not initiate or continue an eviction in order to gain possession of the foreclosed property.” If, as an FHA borrower, you have been evicted in violation of this moratorium, contact the Department of Housing and Urban Development immediately (see below).

The FHA and HUD have made it clear that no further foreclosure moratoria will be issued in connection with the COVID-19 emergency, and the end of September deadline for the FHA’s end of the eviction suspension is not expected to be extended another time.

If you believe you have been affected by the end of this eviction moratorium and require assistance, contact the Department of Housing and Urban Development at toll-free 1-800 CALL FHA.

The FHA and HUD official sites advise homeowners facing eviction, saying, “You should contact a local lawyer for advice. You should find legal sources in your local telephone directory. ”You can also obtain further information from the FHA’s hotline for housing advice at (800) 569-4287.

Borrowers who fear they are close to foreclosure should contact their lender as soon as possible to make arrangements to save their home. Don’t hesitate – each missed mortgage payment will make your options for saving your home less flexible.

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