Industry News

HUD extends foreclosure moratorium for FHA-insured home loans

Homeowners must formalize repayment plans by March 31

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

The Housing and Urban Development Department today announced it has directed all FHA-approved lenders to extend a moratorium on foreclosures of FHA-insured mortgages another 120 days. The previous moratorium on foreclosures was in effect through Feb. 28, and the HUD decision extends that foreclosure moratorium for FHA-insured homeowners until June 30, 2006, for those homeowners who establish a plan by March 31 to pay off the delinquent mortgage debt. "By preventing the possibility of foreclosure for another four months, we want to ease the pressure on FHA-insured borrowers as they try to put their lives back together in the aftermath of the storms," said HUD Secretary Alphonso Jackson. The extended moratorium applies to all FHA-insured loans in presidentially declared disaster areas eligible for individual assistance as a result of Hurricanes Katrina, Rita and Wilma. To be eligible for the full 120-day moratorium, borrowers must make a written commitment to work with their lender on a...