In response to the economic crisis stemming from the impact of coronavirus, the U.S. Department of Housing and Urban Development (HUD) has announced a moratorium on foreclosures and evictions for single-family homeowners with Federal Housing Administration (FHA)-insured mortgages for the next 60 days.
“[These] actions will allow households who have an FHA-insured mortgage to meet the challenges of COVID-19 without fear of losing their homes, and help steady market concerns,” says HUD Secretary Ben Carson, in a statement. “The health and safety of the American people is of the utmost importance to the Department, and the halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times.”
The moratorium also applies to single-family homeowners with Home Equity Conversion (reverse) mortgages.
The action halts all new foreclosure actions and suspends all foreclosure actions currently in process.
In addition, it ceases all evictions of persons from FHA-insured single-family properties.
“This is an uncertain time for many Americans, particularly those who could experience a loss of income,” says Federal Housing Commissioner Brian Montgomery. “As such, we want to provide FHA borrower households with some immediate relief given the current circumstances.”
Borrowers who are unable to make their mortgage payments as a result of the impact of coronavirus are advised to contact their mortgage servicer, which can offer a suite of loss mitigation options, including forbearance, modifications and other payment relief options.
In addition, the Federal Housing Finance Agency has directed government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac to also offer mortgage assistance to borrowers impacted by the coronavirus national emergency, including suspending foreclosures and evictions for at least 60 days.