On Saturday, March 21, the U.S. Department of Housing and Urban Development and the Federal Housing Finance Agency advised the public that “single family homeowners with FHA-insured mortgages” won’t have to deal with foreclosures or evictions for 60 days through at least mid-May. Mortgage providers have been advised to suspend evictions at relevant properties and all current in-process and new foreclosures.
Brian Montgomery, the Federal Housing Commissioner stated: “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. Our actions today make it clear where the priority needs to be.”
Of course, homeowners will have to eventually pay any withheld mortgage payments. They should ask their mortgage providers if they need to pay all back-owed money at one time after the crisis passes or if they can spread out the payments.
The 40 million people who rent properties still haven’t received any federal relief. At this time, renters have been advised to refer to their states for any changes in court and rental property eviction proceedings. Several states have placed a hold on evictions until at least April 3.