On Dec. 6, 2024, HUD extended its foreclosure moratoriums for single family Title II, and HECMS in PDMDAs due to Hurricanes Helene and Milton, through Apr. 11, 2025.
FHA also extending the deadline dates for servicers to perform certain legal actions re foreclosure for an additional 180 days following end of the foreclosure moratoriums.
HUD issued FHA INFO -2024-71 and FHA INFO-2024-72 for guidance, waivers for FHA-approved mortgagees regarding presidentially declared major disaster areas (PDMDA).
Specifically in context of devastation caused by Hurricane Helene and Hurricane Milton.
203(k) Limited Waiver
Posted a temporary waiver of 203(k) rehab mortgage insurance program requirement.
That states, when a repair is considered major, it becomes ineligible to be financed as part of program, if repairs prevent borrower from occupying for more than 15 days.
As result of the PDMDAs related to Hurricane/Tropical Storm Helene and Hurricane Milton, many properties were severely impacted or destroyed and in need of repair.
Temporary waiver of definition of major repair related to the 15 days (or 30 days after Nov. 4, 2024) needed for repair completion is crucial to ensure homeowners rebuild.
Applies to FHA-insured Limited 203(k) mortgages closed on or before Aug. 31, 2025.
Waiver does not waive requirement that 1 borrower occupy property within 60 days.
Damage Inspection Waiver
Issued temporary waiver of policy requiring damage inspection reports for properties in PDMDAs that must be completed after closure date of determined incident period.
Or at least 14-days from the start of the incident period, whichever is earlier.
Temporary waiver of the second 14-day incident period applies to inspection reports associated with Hurricane Milton (DR-4834-FL), as declared in Oct. 2024, #228835.
Due to storms, current policy of requiring a separate 14-day waiting period for damage inspections and reports has created the potential for repair/rehabilitation delays.
Presence of FEMA provided enough stability, risk mitigation to eliminate requirement for 2nd 14-day waiting period for inspection, damage reports associated with Milton.
The policy waives 14 day waiting period to conduct the damage inspection report.
Applies only to properties located within overlapping PDMDAs, waives 14-day waiting period to conduct damage inspection report, does not waive damage inspection report.
Not applicable to properties located in areas included in Hurricane Milton PDMDA.
Unless properties also included in a PDMDA associated with Hurricane/Storm Helene.
Reminder Guidance
For forward mortgages, mortgagee may offer forbearance relief to borrowers with property, place of employment located within PDMDA as informal, formal forbearance.
Mortgages secured by properties in PDMDAs are subject to 90-day foreclosure pause.
In PDMDAs, FHA provides mortgagees 90-day extension from foreclosure moratorium expiration date to commence or recommence a foreclosure action or evaluate borrower
Home equity conversion mortgages (HECM) that become due, payable for reasons other than death of surviving borrower are subject to 90-day foreclosure extension.
In PDMDAs, FHA provides HECM mortgagees 90-day extension from date of PDMDA foreclosure moratorium expiration date to commence, recommence foreclosure action.
Properties with pending mortgages or endorsements in areas under PDMDA designated for individual assistance must have a damage inspection report to identify damage.
Damage inspection report must be completed by FHA roster appraiser even if inspection shows no damage to property, report must be dated after incident period.
All damages, regardless of amount, must be repaired by licensed contractors and property must be restored to pre-loss condition with appropriate documentation.
Effectiveness
Temporary policy waiver is effective through Aug. 31, 2025.
Dec. 2024 HUD Moratorium Extension
On Dec. 6, 2024, HUD extended its foreclosure moratoriums for single family Title II, and HECMS in PDMDAs due to Hurricanes Helene and Milton, through Apr. 11, 2025.
FHA also extending the deadline dates for servicers to perform certain legal actions re foreclosure for an additional 180 days following end of the foreclosure moratoriums.
Regulators
HUD
Entity Types
Bank; Thrift
Reference
Lt FHA Info 2024-87, PR 24-314, Lt 2024-25, 12/6/2024; Lt FHA Info 2024-72, FHA Info 2024-71, 10/21/2024;
