The Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD), announced that it is suspending foreclosures and foreclosure-related evictions through February 28, 2021. This moratorium is the fourth extension of the 60-day suspension that the FHA first put in place on March 18, 2020.
HUD also said that homeowners will get until February 28, 2021, to request a COVID-19 forbearance from their mortgage servicer. If you have a financial hardship brought on by the pandemic, you’ll be allowed to defer or make reduced payments for six months, which you can extend for another six months.
The foreclosure moratorium stops all new foreclosure actions and suspends all foreclosure actions currently in process for FHA-insured single-family loans and home equity conversion mortgages (reverse mortgages). The moratorium, however, does not apply to vacant or abandoned properties. The eviction suspension ceases all evictions of persons from FHA-insured single-family properties, excluding actions to evict the occupants of legally vacant or abandoned properties.
Many states and cities, as well as other governmental entities, have also enacted emergency foreclosure moratoriums and bans on evictions due to the COVID-19 outbreak. Even if the foreclosure or eviction moratorium for FHA-insured loans doesn’t apply to you, one of these suspensions might.
FHA is also extending through February 28, 2021, the deadline for single-family borrowers with FHA-insured mortgages to request an initial COVID-19 forbearance, sometimes called a CARES Act forbearance, from their mortgage servicer. With this kind of forbearance, you can defer or reduce your mortgage payments for up to a year.
To find out if you have an FHA-insured loan, you can look for an FHA case number on your mortgage contract. Sometimes, though, loans lose their FHA-insured status. Call HUD’s National Servicing Center at 877-622-8525 if you have questions about your loan's status. You can also check your billing statement to see if you pay a mortgage insurance premium (MIP). MIP is what FHA calls its mortgage insurance. If you’re paying MIP, then you have an FHA-insured loan. You can also ask your servicer (often your bank or lender) if you have an FHA-insured loan.
If you have an FHA-insured mortgage, go to FHA’s COVID-19 Resources for Homeowners webpage to learn about different relief options. The Consumer Financial Protection Bureau also provides a Coronavirus Mortgage and Housing Assistance webpage.
Effective date: December 21, 2020