Regardless of the delinquency status of the Mortgage, all FHA-insured Borrowers, impacted directly or indirectly by COVID-19, may request a COVID-19 Forbearance from their Mortgage servicer. The initial COVID-19 Forward Forbearance must be requested by the Borrower on or before September 30, 2021.
If a Borrower is experiencing a financial hardship negatively impacting their ability to make on-time Mortgage Payments due to COVID-19 and requests a COVID-19 Forbearance, the Mortgagee must offer the Borrower a COVID-19 Forbearance.
The Mortgagee may utilize any available method for communicating with a Borrower regarding a COVID-19 Forbearance to meet these requirements. Acceptable methods of communication regarding a COVID-19 Forbearance include, but are not limited to, emails, text messages, fax, teleconferencing, websites, web portals, etc. If a Mortgagee sends out a general communication advising that a COVID-19 Forbearance is available, the Borrower may reply to that communication requesting a COVID-19 Forbearance via email, phone call, or any other method of communication clearly made available to the Borrower by the Mortgagee.
The COVID-19 Forbearance Period is based on the date of initial COVID-19 Forbearance. If needed and the initial COVID-19 Forbearance Period was issued on or before June 30, 2021 an additional COVID-19 Forbearance period for up to six months may be requested by the Borrower and approved by the Mortgagee. No additional forbearance period is available for COVID-19 Forbearance initiated July 1, 2021 through September 30, 2021.
If an additional Forbearance period is needed an extension may be available as follows:
For Borrowers who requested their initial COVID-19 Forbearance:
- On or before June 30, 2020, if needed, the Borrower may request, and the Mortgagee must approve, up to two additional three-month COVID-19 Forbearance periods, after 12 months of COVID-19 Forbearance. The maximum COVID-19 Forbearance must not exceed 18 months and must not extend beyond December 31, 2021;
- Between July 1, 2020 and September 30, 2020, if needed the Borrower may request, and the Mortgagee must approve, up to one additional 3-month COVID-19 Foreclosure period, after the 12 months of COVID-19 Forbearance. The maximum COVID-19 Forbearance must not exceed 15 months and may not extend beyond December 31, 2021;
- Between October 1, 2020 and June 30, 2021, the maximum COVID-19 Forbearance must not exceed 12 months and may not extend beyond June 30, 2022.
If the initial COVID-19 Forbearance was on or before September 30, 2020 and an extension(s) is needed, the Borrower must request each three-month extension individually.
The term of the initial and any additional COVID-19 Forbearance period may be shortened at the Borrower’s request.
The Mortgagee must waive all Late Charges, fees, and penalties, if any, as long as the Borrower is on a COVID-19 Forbearance Plan.
Any Borrower who is granted a COVID-19 Forbearance and is otherwise performing as agreed is not considered to be delinquent for purposes of credit reporting.
For additional FHA Policy Information, see:
Handbook 4000.1 III.A.2.o.iii at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh