While Foreclosure Moratorium Ended, FHFA, HUD, VA and USDA Extend Eviction Moratoria

Ballard Spahr LLP

Ballard Spahr LLP

The Centers for Disease Control and Prevention's (CDC) eviction moratorium expired on July 31, 2021. Meanwhile, at President Biden's request, the Acting Director of the Federal Housing Finance Agency, and the Secretaries of the U.S. Department of Agriculture (USDA), U.S. Department of Housing and Urban Development (HUD), U.S. Department of Treasury, and U.S. Department of Veterans Affairs (VA) announced the extension of their foreclosure-related eviction moratoria until September 30, 2021.

In Mortgagee Letter 2021-19, dated July 30, 2021, HUD advises that the extension of its foreclosure-related eviction moratorium applies to all FHA Title II single-family forward and Home Equity Conversion (reverse) mortgage loans, other than FHA loans secured by vacant or abandoned properties. HUD stated that it extended the foreclosure-related eviction moratorium to “avoid displacement of severely distressed borrowers” and “provide [b]orrowers additional time to access federal, state, or local housing stability resources or to consult with HUD-certified housing counselors.” HUD also advises that during the eviction moratorium, a lender or servicer may not initiate or continue with an eviction to acquire possession of a foreclosed property.

In VA Circular 26-21-14, dated July 30, 2021, the VA advises that foreclosure-related evictions are not to be initiated or completed on properties previously secured by VA-guaranteed loans (including properties in VA’s real estate owned portfolio), although the moratorium does not apply to vacant or abandoned properties.

In press release No. 0169.21, dated July 30, 2021, USDA states that despite the expiration of the foreclosure moratorium on July 31, 2021, after that date “no new foreclosure filings should occur until homeowners are reviewed for new options to reduce their payments and stay in their homes.”

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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