FHA Extends HECM Foreclosure Moratorium

FHA Extends HECM Foreclosure Moratorium

HECM borrowers who have been impacted by COVID-19 and are facing foreclosure have been granted an extension to December 31, 2020 to request a six-month delay in having their loans called due and payable.
 
Details were provided in Mortgagee Letter 2020-34. The previous deadline, announced in ML 2020-06, was October 30, 2020.
 
ML 2020-34 provided the same six-month extension for homeowners seeking forbearance relief.
 
“Due to the continued COVID-19 pandemic and its impact on borrowers across the country, HUD recognizes the need to extend the deadline for approving a COVID-19 forbearance or a HECM extension beyond the October 30, 2020, date provided in ML 2020-06,” says Mortgagee Letter 20-34.