By Illinois Advocates Attorney Conor Grealish
HUD Extends Protections To Homeowners With FHA Backed Loans As homeowners continue to navigate life during the novel coronavirus pandemic, they should be aware that the federal government has extended some protections for them during these difficult times. Specifically, the Department of Housing and Urban Development (“HUD”) has recently extended a ban on evictions and foreclosures for single-family homes that are backed by the Federal Housing Administration (“FHA”) until the end of the year. This affords protections on evictions and foreclosures to roughly 8.1 million FHA borrowers through the end of 2020. What this means is that any foreclosure or eviction proceeding on a home that is insured by the FHA will be “paused” until the end of the year. Good news for homeowners who have been greatly affected by COVID.
To determine whether your home loan is an FHA insured loan, simply review the loan closing documents from your most recent purchase or refinance. For closings occurring prior to October 2015, look for the “Settlement Statement (HUD-1). For closings occurring during or after October 2015, look for the more recent version of this document, called a “Closing Disclosure.” On either document, on the first page, the top right-hand side will indicate your “loan type” or “type of loan.” If this part indicates the loan is “FHA,” then you have an FHA backed loan and the extended protections apply to you. If you cannot find your closing documents, ask your lender or loan servicing company for copies of them. They may also be able to simply tell you whether your loan is an FHA insured loan. Your lawyer from the closing may also have this information. If you were represented by CTM Legal Group during the purchase of your home, we will have this information, so feel free to call our office to inquire.
If you are the owner of a home that is backed by the FHA and you cannot make a mortgage payment, you should contact your loan servicer immediately and discuss a forbearance plan or loan modification. Before agreeing to any changes on the terms of your mortgage, a homeowner should understand the impact on those changes and if there are any further protections that the federal and state government has extended to homeowners during the COVID crisis. CTM Legal Group has experienced attorneys who can assist homeowners during these unprecedented times and help them navigate through the ever-changing legal landscape as it applies foreclosures and evictions.
Feel free to call our office at 312-818-6700 for a free consultation.