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On July 30, 2021, the Federal Housing Administration (FHA) announced an extension of its moratorium on evictions for foreclosed borrowers and their occupants through September 30, 2021, in response to COVID-19 and the ongoing economic recovery.

FHA’s eviction moratorium extension will also help ease some pressure from lenders who are seeing a rise in delinquencies as rates climb higher.

As part of the COVID-19 Forbearance Plan, Mortgage servicers cannot initiate evictions for FHA Single Family Title II forward, and Home Equity Conversion Mortgage (HECM) foreclosed properties unless they are legally vacant or abandoned.

The initial forbearance period may be up to six months and an additional period of up to six months may be requested by the Borrower for a maximum of 12 months and must be approved by the Mortgagee. The forbearance must not extend beyond June 30, 2022.

“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,” said Principal Deputy Assistant Secretary for Housing Lopa P. Kolluri.

“We don’t want to see any individuals or families displaced unnecessarily while trying to recover from the pandemic.”

Mortgage servicers may initiate or continue foreclosures following FHA requirements once the moratorium expires.

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