The White House announced today that the Departments of Housing and Urban Development, Veterans Affairs and Agriculture will extend their foreclosure moratoria through July 31, 2021.
Subsequent to the White House announcement, HUD published Mortgage Letter 2021-15 to extend the foreclosure and eviction moratorium as well as the associated deadline for first legal action and Reasonable Diligence Time Frame.
To assist seniors with Home Equity Conversion (reverse) Mortgages (HECMs) who have been negatively affected by COVID-19, FHA is extending the ability for these homeowners to request an extension before the servicer may request the loan be called due and payable. For extension requests received between July 1, 2021, and September 30, 2021, servicers must grant homeowners an extension of up to six months.
For HECM homeowners with loans that have already been called due and payable, servicers must approve homeowner requests for an extension for any deadline related to foreclosure and claim submission of up to six months when the request is received between July 1, 2021, and September 30, 2021.
For all HECMs that received an extension between July 1, 2020, and September 30, 2020, FHA is providing one additional three-month extension period if needed, when the homeowner requests this extension from their mortgage servicer.
NRMLA will continue to monitor the situation and report any important updates to the membership.