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News & Knowledge

HUD and FHA Announce Foreclosure Moratoriums

March 19, 2020

By: Michael Provenzale

Effective immediately, the U.S. Department of Housing and Urban Development (HUD) has issued a moratorium on all foreclosures of FHA-insured single family homes for the next sixty days (through May 17, 2020). Similarly, the Federal Housing Finance Administration (FHFA) has directed Fannie Mae and Freddie Mac to suspend all residential foreclosures for the same time period.


This moratorium prevents both the filing of new foreclosure lawsuits on these properties, as well as the completion of foreclosures already in progress. It is unclear at the moment whether affected foreclosure cases which have already been filed, but are still being litigated, may continue during this time period, but with court closures across the State of Florida, continuing to litigate these cases may be difficult, even if not prohibited. HUD has issued such moratoriums in the past, most recently with regard to Hurricane Maria victims in Puerto Rico and the U.S. Virgin Islands. 
 
For the time being, there is no moratorium on the foreclosure of other residential mortgages, or any commercial mortgages, although the Consumer Financial Protection Bureau has urged financial institutions to be accommodating to consumers affected by the coronavirus pandemic.

For up-to-date news please follow our Coronavirus (COVID-19) Response Team page. 


This article is informational only. You should consult an attorney before acting or failing to act. The law may change rapidly and no warranty is given. LOWNDES DISCLAIMS ALL IMPLIED WARRANTIES AND WITHOUT LIMITATION, ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. ALL ARTICLES ARE PROVIDED AS IS AND WITH ALL FAULTS. Consult a Lowndes attorney if you wish to establish an attorney/client relationship.
Michael

Mike Provenzale is a shareholder in the Creditors’ Rights Group, representing institutional and private lenders in commercial loan foreclosure and other collection lawsuits, receiverships, workouts, bankruptcies, and REO dispositions throughout the state. His litigation practice also includes business, real estate, and condominium litigation.

Additionally, Mike has experience in the area of Real Estate Transactions, Development and Finance, where he has represented a myriad of private and public clients in connection with the leasing, financing, acquisition, and disposition of commercial real estate, and has published several articles on current creditors’ rights and real estate issues.

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