FHA Foreclosure Moratoriums

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Case Specific Foreclosure Holds

Lenders may receive notices from the Department requiring a temporary hold on foreclosure for the loans listed. This action, when taken, is necessary to allow sufficient time for HUD to complete its review of the subject loans relative to Predatory lending or other issues.

Upon completion of the individual reviews, HUD will notify lenders that the foreclosure process may continue. This release letter will state that foreclosure must be commenced (or recommenced) within 90 days of the date of the release letter. Please note that this is similar to suspensions resulting from bankruptcy actions.

Attorney Fee Reimbursement - All Moratoriums and Foreclosure Holds

For attorney fee reimbursement, HUD will treat the foreclosure suspensions required by all moratoriums and/or foreclosure holds similar to the suspensions resulting from bankruptcy actions. Mortgagees may claim the actual attorney fees incurred, up to a maximum of 75% of HUD's Attorney Fee Schedule for a foreclosure that was not completed due to a moratorium. For the foreclosure action that is completed, mortgagees may claim their actual attorney fees up to the maximum amount noted in HUD's Attorney Fee Schedule (see Mortgagee Letter 05-30 with Attachments 1 - 2 - 3 - 4, 01-19 with Attachment, or 98-26 with Attachment depending on the date and type of legal action taken).

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