FHA Extends Current Foreclosure Protections for Borrowers in Maui County, HI
Industry Update
November 2, 2023
Source: Federal Housing Administration
The Federal Housing Administration (FHA) today announced it is extending its existing disaster-related foreclosure moratorium in Maui County, HI, through May 6, 2024, for borrowers with FHA-insured single-family mortgages, including seniors with Home Equity Conversion Mortgages. This extension provides additional time for borrowers in the process of recovering from the unprecedented challenges of the catastrophic Maui wildfires to consult with mortgage servicers and housing counselors and to access federal, state, and local housing resources without also having to contend with the burden of an impending foreclosure action.
“When I visited Maui in September, I saw firsthand the damage inflicted by the devastating wildfires. The people of Maui are resilient, but they will need support for years to come to rebuild and recover,” said HUD Deputy Secretary Adrianne Todman. “With today’s announcement, we are assuring homeowners in Maui that HUD is here to support them as they navigate next steps with their family.”
FHA implemented an automatic 90-day foreclosure moratorium that required mortgage servicers to halt the initiation or completion of all foreclosure actions in Maui County on August 10, 2023, when the disaster occurred. The moratorium was originally set to expire on November 8, 2023. In addition to extending the foreclosure moratorium through May 6, 2024, FHA is also extending the deadline dates for servicers to perform certain legal actions related to foreclosure for an additional 180 days following the end of the foreclosure moratorium.
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