this federal housing administration (FHA) issued Mortgage Letter 2024-15 on Friday, extending the foreclosure moratorium until January 1, 2025, for FHA-insured forward mortgages and home equity conversion mortgages (HECM) in Maui, Hawaii.
The moratorium was originally set to expire on May 6 and had been extended before, but was pushed back to August earlier this year. Now, the deadline has been extended into the New Year in recognition of the island’s ongoing recovery efforts following wildfires in the summer of 2023.
this U.S. Department of Housing and Urban Development (HUD) “Due to the extent of damage caused by wildfires, reduced ability to access needed resources, and Maui’s unique location, the foreclosure moratorium on properties in Maui County, Hawaii, is being further extended,” the letter states.
“HUD believes that borrowers need the additional time provided by the moratorium to access federal, state, or local housing resources, rebuild, and consult with a HUD-approved housing counselor.”
The letter explains that the moratorium “applies to the commencement of foreclosures and the completion of foreclosures in progress.” It also applies to HECM loans, which are reverse mortgages under the FHA-funded program.
The moratorium applies “only when the HECM becomes due and payable for reasons other than the death of the last borrower and is not subject to the extension period; and when foreclosures commence and foreclosures are already in progress,” ML said.
Immediately following the wildfires, the Federal Housing Administration reminded lenders and servicers of forward and reverse mortgages about relief options available to those affected by recent natural disasters. It tells lenders they should contact affected borrowers as soon as possible about possible payment deferrals.
