The Federal Housing Administration (FHA) has announced an extension of the foreclosure moratorium on Maui, Hawaii through Jan. 1, 2025, for FHA-insured forward mortgages and Home Equity Conversion Mortgages (HECMs). This extension comes in response to the ongoing recovery efforts following wildfires that ravaged the island in the summer of 2023.
The U.S. Department of Housing and Urban Development (HUD) has decided to prolong the foreclosure moratorium for properties in Maui County due to the extensive damage caused by the wildfires. HUD recognizes the challenges faced by borrowers in accessing resources and rebuilding their homes, hence the need for additional time provided by the moratorium.
According to Mortgagee Letter 2024-15, the moratorium applies to the initiation and completion of foreclosures for both forward mortgages and HECM loans. It is intended to give borrowers the opportunity to seek federal, state, or local housing resources, consult with HUD-approved housing counselors, and stabilize their financial situation.
Furthermore, the FHA has reminded lenders and servicers to offer relief options to borrowers affected by natural disasters, including wildfires. Lenders are encouraged to reach out to impacted borrowers promptly to discuss potential forbearance relief options.