Foreclosure Guidance

What Is Foreclosure?

If you are a homeowner and fail to make your mortgage payments, the lender or servicer of your loan may be within their rights to take possession of the mortgaged property. Generally, borrowers must be notified if the lender or servicer begins foreclosure proceedings.

What If I've Been Financially Impacted By COVID-19?

The CARES Act provides protections to many homeowners who are going through a financial hardship because of COVID-19. These protections apply to all federally backed and federally sponsored mortgage loans, which includes FHA, VA, USDA, Fannie Mae, and Freddie Mac loans. The Federal Housing Administration (FHA) extended the foreclosure and eviction moratorium for single family FHA-insured mortgages through June 30, 2021.

This means that some lenders or loan servicers are prohibited from initiating or proceeding with foreclosure and foreclosure-related eviction actions for FHA-insured single family forward and reverse mortgages, except for those secured by legally vacant and abandoned properties. However, whether or not your mortgage loan falls under the foreclosure moratorium depends on what type of loan you have, and what rules apply to your servicer.

Is My Loan Currently Protected From Foreclosure?

You need to contact your mortgage servicer directly to find out what type of loan you have and what kind mortgage relief you may qualify for. Their contact information is usually listed on the mortgage statement you receive each month. If their information is not listed, click on the links below to learn how to find your servicer, and how to determine what type of relief you may qualify for. 

What Can I Do To Avoid Foreclosure?

Find Foreclosure Avoidance Counseling

HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of the Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home. To find out more about this program and to determine your eligibility, click here to contact a counseling agency in your area.

Apply For Forbearance

If you have been financially impacted by COVID-19, you may qualify for forbearance — which allows you temporarily to pay your mortgage at a lower rate or temporarily to stop paying your mortgage — or other mortgage relief programs. Learn more here.