FHA Extends Foreclosure Moratorium to HECM Borrowers in Puerto Rico and U.S. Virgin Islands

Due to the extensive damage caused by Hurricane Maria in Puerto Rico and the U.S. Virgin Islands, the Department of Housing and Urban Development (HUD) published FHA Info #18-37 which extends foreclosure timelines through September 15, 2018, for HECM borrowers living in those Presidentially-Declared Major Disaster Areas (PDMDAs).

This extension is applicable only to those counties declared eligible for Individual Assistance by the Federal Emergency Management Agency (FEMA). It applies to both the initiation of foreclosures and  those already in process on HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse.

This guidance is effective immediately and is applicable to all homeowners with FHA-insured HECM mortgages whose property or place of employment is in the PDMDAs for Puerto Rico’s Hurricane Maria (FEMA-DR-4339) and U.S. Virgin Islands’ Hurricane Maria (FEMA-DR-4340).