Remember when HUD had a 90 day moratorium on Foreclosures in some states?

Was this action a solution, or did it delay the recovery?

Basically, as a result of the several state investigations of foreclosure activity, some states have requested the moratorium of all foreclosures including HUD (i.e., FHA mortgages). I am sure some similar moratorium provisions are effective on VA loan foreclosures (which are a very few) and quite probably, Fannie Mae and Freddie Mac foreclosures.

Official word from HUD was…

“The Department (HUD) has been advised that due to a recent change in State Laws or State mandated moratoriums, some foreclosures had to be cancelled or stopped and rescheduled to complete all of the new legislative requirements… A ninety (90) day extension to commence foreclosure is provided to those mortgagees where the initial legal action to commence foreclosure has been cancelled to comply with a new State legislation….This extension is provided under the authority of 24 CFR 203.355.”   And the “extension” means it’s “tacked onto” the existing moratorium laws in the appropriate state.

Here is a link to some answers to questions:

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply