HUD and VA Extend Foreclosure Moratoriums Through August 31
On June 17, 2020, the U.S. Department of Housing and Urban Development (HUD) in Mortgagee Letter 2020-19 extended the foreclosure and eviction moratorium for FHA insured single-family loans from June 30, 2020 to August 31, 2020. Also on June 17, 2020, the U.S. Department of Veterans Affairs (VA) in Circular 26-20-22 extended the foreclosure moratorium for VA guaranteed loans from June 30, 2020 to August 31. 2020.
The FHA moratorium applies to all FHA Title II single-family forward and Home Equity Conversion (reverse) mortgage loans, except for FHA loans secured by vacant or abandoned properties. Deadlines for the first legal action and reasonable diligence timelines are extended by 90 days from the date of expiration of the moratorium.
As previously reported, recently the Federal Housing Finance Agency announced the extension of the Fannie Mae and Freddie Mac moratorium on foreclosures and evictions from June 30, 2020 to August 31, 2020.
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