August 31, 2021
September 1, 2021 marks the start of a countdown–the final days of the FHA foreclosure eviction moratorium issued to help FHA borrowers avoid loan default and foreclosure during the economic hardship of the global COVID-19 pandemic.
There were two FHA-wide orders during the pandemic.
One was a prohibition on foreclosures on homes securing an FHA mortgage, and the other was a moratorium on foreclosure-related eviction for those with FHA mortgages who were in the foreclosure process when the pandemic hit.
The moratorium on FHA foreclosures ended in July 2021, but the foreclosure eviction ban was extended until the end of September 2021. On July 30, 2021, the FHA and HUD issued an announcement stating as such, which included the following:
“Foreclosure-related evictions of persons from properties that were secured by FHA-insured Single Family mortgages, excluding legally vacant or abandoned properties, are suspended through September 30, 2021.”
The agency adds, “A Mortgagee must not initiate or continue with an eviction to acquire possession of the foreclosed property.” If you have been approached about foreclosure eviction as an FHA borrower in violation of this moratorium, contact the Department of Housing and Urban Development immediately (see below).
The FHA and HUD have been quite clear on the fact that no further foreclosure moratoriums related to the COVID-19 emergency will be issued, and the deadline at the end of September for the end of the suspension on FHA foreclosure-related evictions is not anticipated to be extended another time.
If you anticipate being affected by the end of this eviction moratorium and need assistance, contact the Department of Housing and Urban Development at their toll-free number, 1-800 CALL FHA.
The FHA and HUD official sites advise homeowners who may face foreclosure-related eviction, “You should contact a local legal assistance provider for advice. You should be able to find legal resources in your local phone directory.” You can also get more information from the FHA Housing Counseling Hotline at (800) 569-4287.
Borrowers who fear they may be close to a foreclosure action should contact their lender as soon as possible to make arrangements to save their home. Don’t delay–every missed mortgage payment makes your options to save your house less flexible.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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