COVID-19: Did FHA suspend foreclosures and evictions on FHA-insured single family properties as a result of the COVID-19 pandemic?

Yes.  FHA-insured single family mortgages, excluding vacant or abandoned properties, are subject to a moratorium on foreclosure through June 30, 2021.  The moratorium applies to the initiation of foreclosures and to the completion of foreclosures in process.
 
Separate from any eviction moratorium applicable to lessors provided under the CARES Act, evictions of persons from properties secured by FHA-insured single family mortgages, excluding actions to evict occupants of legally vacant or abandoned properties, are also suspended through June 30, 2021.
 
Deadlines for the first legal action and reasonable diligence timelines are extended by 180 days from the date of expiration of this moratorium for FHA-insured single family mortgages, except for FHA-insured mortgages secured by vacant or abandoned properties.
 
The foreclosure and eviction moratorium was first announced March 18, 2020 in Mortgagee Letter 2020-04 and has been subsequently extended through the publication of Mortgagee Letters 2021-05, 2021-03, 2020-43, 2020-27, 2020-19, and 2020-13.  FHA continues to evaluate the situation and any need for further extensions to the moratorium.  Any further extensions will be communicated through a Mortgagee Letter.  Mortgagee Letters are available at:
https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

FHA continues to revise its FHA Single Family COVID-19 information as needed to keep stakeholders updated with the latest information about FHA’s response to the COVID-19 pandemic.  Related information for FHA Mortgagees, Borrowers and other interested parties is available at: https://www.hud.gov/program_offices/housing/sfh and on the https://www.hud.gov/answers website.
 
If you’re among those financially impacted by the COVID-19 pandemic, you might be concerned about how to pay your mortgage or rent. Federal and state governments have announced plans to help struggling homeowners during this time.  For more information, visit: https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/ 

 


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-05446