Eligible non-borrowing spouses currently have 90 days after the death of the last surviving HECM borrower to establish legal ownership or other ongoing legal right to remain in the property.
Today, the Federal Housing Administration announced in FHA Info #20-72 that it issued a temporary partial waiver and corresponding housing directive waiver of that requirement in the superseded Mortgagee Letter (ML) 2014-07 and subsequent ML 2015-02 due to continued COVID-19 National Emergency concerns.
“FHA recognizes the National Emergency declaration and resulting closures of courthouses, government offices, and other businesses may make it difficult for an eligible NBS to obtain the needed documents to establish legal ownership or legal right to remain in the property securing the HECM,” says FHA Info #20-72. “FHA issued this partial waiver — which allows an eligible NBS to enter into a deferral period and avoid foreclosure if they are unable to meet the 90-day requirement because of circumstances beyond their control that are related to the COVID-19 National Emergency. The temporary partial 90-day Right to Remain waiver is limited to a 12-month period from the date of issuance.”