The U. S. Department of Housing and Urban Development announced Thursday, July 7, that FHA loan servicers and loan servicers participating in the Making Home Affordable Program would be required starting August 1 to extend foreclosure forbearance periods up to a year for unemployed homeowners. The announcement may provide some relief for unemployed homeowners who are struggling to make home mortgage payments. Additional assistance may be available through the Hardest Hit Fund for residents of states where the economic downturn has had the greatest effect on employment and housing prices, as well as the newer Emergency Homeowner Loan Program. Homeowners struggling to make mortgage payments and avoid foreclosure are encouraged again to consult with HUD-approved housing counseling agencies, as we explained in our Post “Foreclosure Avoidance Counseling.” Those agencies now may have additional ways of helping homeowners avoid or at least delay foreclosure.
Ronald D. Wiley, Jr., the author of this post, is Of Counsel in MartinWren, P.C.’s Charlottesville office and is chair of MartinWren, P.C.‘s Charlottesville Real Estate Attorneys practice section. To contact Ron, please call him at (434) 817-3100 or email him at firstname.lastname@example.org.