The Acting Secretary of the Department of
Housing and Urban Development (HUD) has announced an extension of the deadline
for borrowers with FHA mortgage loans to apply for and receive forbearance.
Matthew Ammon said up to six months of deferred or reduced mortgage payments
may be available to homeowners financially impacted by the pandemic who request
it by March 31, 2031. An additional six-month extension to the initial forbearance
term is possible.

Ammon said, “On the first day of his
new Administration, President Biden took immediate actions to stem the economic
devastation experienced by the nation’s hardworking families because of the pandemic.
Today’s extension supports the President’s direction by providing more time for
homeowners to seek mortgage payment relief.”

The changed timeline aligns with
FHA’s extension of its foreclosure and eviction moratoria for single family
homeowners with FHA-insured mortgages which was announced last week. That
relief is also extended through March 31, 2021. Ammon said both the moratoria
and forbearance measures are vital first steps to provide urgent relief to
safeguard those struggling with financial and home uncertainty.

FHA encourages borrowers with
FHA-insured mortgages who can make their mortgage payments to continue to do
Borrowers with FHA-insured mortgages seeking additional information on
available options should visit FHA’s COVID-19 Resources for Homeowners web page on
Information for borrowers with other types of loans may be available at the Consumer
Financial Protection Bureau’s coronavirus webpage.

By Jann Swanson , dated 2021-01-27 09:21:34

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Courtesy of Mortgage News Daily

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