The Federal Housing Administration (FHA) announced an extension of its moratorium on evictions for foreclosed borrowers and their occupants through Sept. 30, and noted the expiration of the foreclosure moratorium on July 31.
The extension is part of President Biden’s recent announcement that federal agencies will use their authority to extend their respective eviction moratoria through the end of September. FHA’s eviction moratorium extension will avoid displacement of foreclosed borrowers and other occupants who need more time to access suitable housing options.
“We must continue to do everything within our authority to make sure that foreclosed borrowers who are impacted by the pandemic have the time and resources to secure safe and stable housing, whether it’s in their current homes, or by obtaining alternative housing options,” says Lopa P. Kolluri, principal deputy assistant secretary for housing, in a press release. “We don’t want to see any individuals or families displaced unnecessarily while trying to recover from the pandemic.”
With this announcement, mortgage servicers must continue to halt evictions for FHA Single-Family Title II forward and Home Equity Conversion Mortgage foreclosed properties, except for those properties that are legally vacant or abandoned.
Mortgage servicers may initiate or continue foreclosures in accordance with FHA requirements once the single-family foreclosure moratorium expires as planned on July 31, but may not evict a foreclosed borrower or other occupant.
