The Federal Housing Administration (FHA) on Friday published Mortgagee Letter 2024-15, which extends a foreclosure moratorium on the Hawaiian island of Maui through Jan. 1, 2025, for FHA-insured forward mortgages and Home Equity Conversion Mortgages (HECMs).
The moratorium, initially scheduled to expire on May 6 after a previous extension, was pushed into August earlier this year. It has now been extended into the new year in recognition of the continued recovery efforts taking place after wildfires on the island in the summer of 2023.
The U.S. Department of Housing and Urban Development (HUD) ”is now further extending the foreclosure moratorium for properties located in Maui County, Hawaii due to the extent of the devastation from the wildfires, the reduced capacity to access needed resources, and the unique geographic location of Maui,” the letter stated.
“HUD believes that Borrowers need the additional time provided by the moratorium to access federal, state, or local housing resources, rebuild, and consult with HUD-approved housing counselors.”
The moratorium “applies to the initiation of foreclosures and to the completion of foreclosures in process,” the letter explained. It also applies to HECM loans, otherwise known as reverse mortgages under the FHA-sponsored program.
The moratorium applies “only if the HECM is due and payable for reasons other than the death of the last remaining borrower and is not subject to a deferral period; and to the initiation of foreclosures and foreclosures already in process,” the ML said.
Immediately after the wildfires, the FHA reminded lenders and servicers of both forward and reverse mortgages that relief options are available to those impacted by recent natural disasters. It told lenders that they should contact impacted borrowers as soon as possible about potential forbearance relief.
Related
Source link
