As a result of the COVID-19 National Emergency Servicing and Loss Mitigation Program declared by President Trump, the U.S. Department of Housing and Urban Development (HUD) sent a letter yesterday to its loan servicers making them aware of new COVID-19 National Emergency Loss Mitigation Options. HUD told the lenders that the new options for borrowers go into effect immediately but the lender must implement them no later than April 30, 2020.
Highlights of the new forbearance plan:
- The Mortgagee (lender) Â must not deny COVID-19 National Emergency Home Retention Options to Borrowers that experience an adverse impact on their ability to make on-time Mortgage Payments due to the COVID-19 National Emergency and satisfy the loss mitigation criteria set forth in this section.
- (A) Forbearance for Borrowers Affected by the COVID-19
National Emergency If a Borrower is experiencing a financial hardship negatively impacting their ability to make on-time Mortgage Payments due to the COVID-19 National Emergency and makes a request for a forbearance, the Mortgagee must offer the Borrower a forbearance, which allows for one or more periods of reduced or suspended payments without specific terms of repayment. - The initial forbearance period may be up to 6 months. If needed, an
additional forbearance period of up to 6 months may be requested by
the Borrower and must be approved by the Mortgagee.
The term of either the initial or the extended forbearance may be
shortened at the Borrower’s request
.
(B) COVID-19 National Emergency Standalone Partial Claim
The Mortgagee must waive all Late Charges, fees, and penalties, if
any, as long as the Borrower is on a Forbearance Plan.
- (A) Forbearance for Borrowers Affected by the COVID-19
For any homeowners with an FHA loan that are struggling to make their house payments, they should contact their loan servicer to see if they are eligible for relief under this plan.
What to do if you are facing foreclosure and losing your home.
The U.S. Department of Housing and Urban Development (HUD) announced last week, the launch of the Emergency Homeowner’s Loan Program (EHLP) to help homeowners who are at risk of foreclosure.  This program is available in 27 states and is available to homeowners who have experienced a reduction in income due to: 
HUD just released it’s “2010 Overview of U.S. Housing Market Conditions which gave a recap of the housing market for 2010. I’ve previously reported on most of the data and information that HUD included in the report however I thought this report did a good job of giving a complete and concise look at the market for the year so I wanted to share it. 
