FHA: HECM Reasonable Diligence Timeframe Extensions
On April 30, the Federal Housing Administration (FHA) issued a memo announcing the immediate rescinding of Mortgage Letter 2015-03 (option of delayed foreclosure proceedings for non-borrowing spouses.)
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Posted April 30th, 2015
HECM Reasonable Diligence Timeframe Extensions
The Federal Housing Administration (FHA) announced on April 30, 2015 that it is immediately rescinding Mortgagee Letter 2015-03. For any HECM with a case number issued prior to August 4, 2014 with a non-borrowing spouse, HUD is providing HECM mortgagees with an additional 60-day extension of time in which to take first legal action to commence foreclosure, and to comply with reasonable diligence timeframes for such HECMs. During this period debenture interest will not be curtailed.
Mortgagees may immediately elect to begin using this extension. Mortgagees have full discretion to elect this extension. The request for an extension is not conditioned on the continued pursuit of foreclosure or the marketing of the property. The mortgagee’s request for an extension is effective when made and FHA will not be providing any specific approval for this extension.
View these and other recent FHA INFO announcements at the FHA INFO Archive.
Please click here to view the memo online.
Please click here to view Mortgagee Letter 2015-12 [pdf].
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow. Website: www.safeguardproperties.com.