October 20, 2020

HUD: FHA Extends COVID-19 Forbearance Request Timeframe for Single Family Homeowners

Extension through December 31, 2020, ensures homeowners who need assistance can continue to obtain mortgage payment forbearance

Today, the Federal Housing Administration (FHA) announced it is extending the date for single family homeowners with FHA-insured mortgages to request an initial forbearance from their mortgage servicer to forbear their mortgage payments for up to six months. Homeowners experiencing a financial hardship as a result of the COVID-19 pandemic may now request an initial forbearance through the end of this year, December 31, 2020. Previously, homeowners with FHA-insured mortgages needing assistance had until October 30, 2020, to request a COVID-19 forbearance from their mortgage servicer.

“Since day one President Trump has made it clear that no American should fear losing their home in the midst of this pandemic,” said Secretary Carson. “Today’s forbearance request extension for single family homeowners further solidifies that commitment. I can’t stress enough that this relief should be reserved for those that need it most. Americans who are capable of paying their mortgage on time should do so. The great American come back is in full force – if we work together, we can achieve and even surpass the economic prosperity we saw prior to the pandemic.”

FHA requires mortgage servicers to provide up to six months of COVID-19 forbearance when a homeowner requests this assistance, and up to an additional six months of forbearance for homeowners who request an extension of the initial forbearance. Homeowners needing assistance must engage with their servicer to obtain an initial forbearance or to obtain an extension of the initial forbearance.

“By providing this important extension, FHA seeks to assist those struggling with the continued financial effects of the COVID-19 pandemic,” said Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade. “Our goal is to make sure that no homeowner loses their home unnecessarily as a result of this pandemic.”

“It’s always in a homeowner’s best interest to make their mortgage payments if they are able. But for those who are struggling right now, we urge them to engage with their servicer immediately. And, if your servicer contacts you, it is crucial that you respond to them to let them know if you need assistance,” said Deputy Assistant Secretary for Single Family Housing Joe Gormley. “The last thing FHA wants is for any homeowner to risk losing their homeownership investment if they are eligible for assistance.”

FHA requires mortgage servicers to:

This post was originally published here.