Geoff Luxenberg

The Federal Housing Administration (FHA) and U.S. Department of Housing and Urban Development (HUD) yesterday announced it is extending the date for single family homeowners with FHA-insured mortgages to defer their mortgage payments for up to six months.

Homeowners experiencing financial hardship because of the pandemic were previously only given until October 30 to request a forbearance to defer mortgage payments, but now have through the end of the year, December 31, 2020.

The extension can be added to a homeowner's existing forbearance, which could extend relief for up to an additional six months. If you need this added assistance, you must contact your mortgage servicer to obtain an initial, or extension of the initial forbearance.

FHA requirements for mortgage servicers:

• Offer homeowners with FHA-insured mortgages mortgage payment forbearance when the homeowner requests it, with the option to extend the forbearance for up to a year in total. FHA does not require a lump sum payment at the end of the forbearance period.
• Assess homeowners who receive COVID-19 forbearance for its special COVID-19 National Emergency Standalone Partial Claim before the end of the forbearance period. The COVID-19 National Emergency Standalone Partial Claim puts all suspended mortgage payment amounts owed into a junior lien, which is only repaid when the homeowner sells the home, refinances the mortgage, or the mortgage is otherwise extinguished.
• Assess homeowners who are not eligible for the COVID-19 National Emergency Standalone Partial Claim for one of FHA’s COVID-19 expanded home retention solutions announced on July 8, 2020.