On Mar. 6, 2025, HUD extended for 90 days the foreclosure moratorium on FHA insured single family mortgages in Los Angeles County harmed by Jan. 2025 wildfires.
Borrowers unable to make their mortgage payments should contact their mortgage service for assistance as soon as practical or contact FHA Resource Center.
For borrowers whose homes are destroyed, contact an FHA-approved lender about FHA's Section 203(h) loan program that provides 100% financing for eligible owners.
On Jan. 15, HUD issued mortgage relief for California wildfire survivors
HUD issued FHA INFO 2025-07 to remind mortgagees about guidance for FHA-insured forward, Home equity conversion mortgages (HECM) in CAL wildfire disaster area.
The guidance applies to all Presidentially-declared major disaster areas (PDMDAs).
Document dated Jan. 15, 2025, received from HUD Jan. 24, summarized on Jan. 28.
Forward Mortgages
Forward mortgages secured in PDMDAs are subject to 90-day foreclosure moratorium.
Mortgagee may consider borrowers in PDMDAs for an informal forbearance and may offer additional informal forbearance periods if the foreclosure moratorium is extended.
Mortgagee may consider formal forbearances for borrowers in PDMDAs while they are pursuing home repairs and/or resolving verifiable financial difficulties re disaster.
Should contact affected borrowers who may require loss mitigation assistance soon as possible post-disaster, use means to contact borrowers to provide forbearance relief.
HECM Mortgages
In PDMDAs, FHA provides HECM mortgagees an automatic 90-day extension from date of PDMDA foreclosure moratorium expiration date to commence a foreclosure action.
HECMs that become due and payable for reasons other than death of last surviving borrower, spouse are subject to a 90-day extension of HECM foreclosure timelines.
Mortgage Origination
Properties with pending mortgages or endorsements in areas under a PDMDA must have a damage inspection report that identifies and quantifies any dwelling damage.
Damage inspection report to be completed by FHA roster appraiser even if inspection shows no damage to the property, report must be dated after incident period.
Damages to be repaired by licensed contractors or by local jurisdictional requirements.
Property must be restored to pre-loss condition with appropriate documentation.
Mar. 2025 HUD Extends Foreclosure Relief
On Mar. 6, 2025, HUD extended for 90 days the foreclosure moratorium on FHA insured single family mortgages in Los Angeles County harmed by Jan. 2025 wildfires.
Borrowers unable to make their mortgage payments should contact their mortgage service for assistance as soon as practical or contact FHA Resource Center.
For borrowers whose homes are destroyed, contact an FHA-approved lender about FHA's Section 203(h) loan program that provides 100% financing for eligible owners.
