Part of President Trump’s press conference this morning made mention that the United States Department of Housing and Urban Development (HUD) will, amid the current coronavirus crisis, be putting a hold on foreclosure operations and eviction practices, effective immediately.
The announcement came with the declaration of the Defense Production Act which should see an uptick in available gear and resources for health officials and their production teams.
HUD’s delay in penalization for missed payments will last for 60 days, according to Vice-President Pence, and a release issued by the department.
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“The health and safety of the American people is of the utmost importance to the Department, and the halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times,” said HUD Secretary Ben Carson.
It’s important to note that today’s actions only applies to homeowners with FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages. Mortgage services and their parties are instructed to “halt all new foreclosure actions and suspend all foreclosure actions currently in process” and “cease all evictions of persons from FHA-insured single-family properties.”
“This is an uncertain time for many Americans, particularly those who could experience a loss of income. As such, we want to provide FHA borrower households with some immediate relief given the current circumstances,” said Federal Housing Commissioner Brian Montgomery. “Our actions today make it clear where the priority needs to be.”
The suspension of penalty action goes into effect today, March 18, and is fully detailed by the Department of Housing and Urban Development here.