No. A “lump sum” repayment for the total missed payments is not required immediately at the end of the COVID-19 Forbearance period. However, lenders will then evaluate Borrowers for appropriate loss mitigation options. Owner-occupant Borrowers who were current or less than 30 Days past due as of March 1, 2020, and who indicate they have the ability to resume making on-time mortgage payments at the end of their COVID-19 Forbearance period are eligible for a COVID-19 Standalone Partial Claim. No interest will accrue on the COVID-19 Standalone Partial Claim and no payment is required until the payoff, maturity or acceleration of the FHA-insured Mortgage, including for the sale of the Property or a refinancing, or the termination of FHA insurance on the Mortgage. The amount of the COVID-19 Standalone Partial Claim is subject to the maximum statutory limit for all Partial Claims for an FHA-insured Mortgage.
If the Borrower is not eligible for the COVID-19 Standalone Partial Claim, the Mortgagee must evaluate any Borrower not brought current through a COVID-19 National Emergency Standalone Partial Claim Option for FHA’s Loss Mitigation Home Retention Options (III.A.2.k) or Home Disposition Options (III.A.2.l). Additional information see is available in Handbook 4000.1 at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
HQ Policy Determination – COVID-19 guidance