On Nov. 9, HUD issued lender letter re Maui foreclosure moratorium.
HUD issued Lender Letter 2023-10 to extend foreclosure moratoriums in Maui, Hawaii.
This foreclosure extension in applicable to all home loans guaranteed by Section 184A.
Properties guaranteed by the Section 184A program are subject to a moratorium on foreclosure through May 6, 2024 for new and current 184A mortgage assignments
Follows recent government relief as a result of Maui fires, see #181697, #182481.
Background
Section 184A home loans are a mortgage product offered to Native Hawaiian islanders.
On Aug. 10, 2023, President Joseph R. Biden declared Maui County, Hawaii a major disaster area due to the wildfires, with HUD imposing a 90-day foreclose moratorium.
HUD’s current automatic foreclosure moratorium is set to first expire on Nov. 8, 2023.
Extension of Moratorium
Due to the extent of the devastation from the wildfires and the unique geographic location of Maui, HUD is extending the foreclosure moratorium to allow loss mitigation.
Properties guaranteed by the Section 184A program are subject to a moratorium on foreclosure through May 6, 2024 for new and current 184A mortgage assignments.
Effectiveness
The provisions of this Lender Letter are effective immediately.
May 2024 HUD Moratorium Extension
On May 29, 2024, HUD issued Letter 2024-04 to extend moratorium until Aug. 4, 2024
For properties located in Maui County and guaranteed by the Section 184A program.
Moratorium applies to the initiation of Section 184A mortgage assignments to HUD and to the completion of Section 184A mortgage assignments already in process.
Jul. 2024 HUD Moratorium Extension
On Jul. 26, 2024, HUD issued Letter 2024-05 to extend moratorium until Jan. 1, 2025.
Applies to Maui County, Hawaii and housing loan guarantee Section 184A program.
Moratorium applies to the initiation of Section 184A mortgage assignments to HUD and to the completion of Section 184A mortgage assignments that are already in process.
First legal action deadlines/diligence time frame extended 180 days from Jan. 1, 2025.
Interested parties can submit feedback for 30 calendar days from the date of issuance.
