Foreclosure and Eviction Moratorium Extension:
The U.S. Department of Agriculture (USDA) Rural Development is extending its foreclosure and eviction moratorium for all Single Family Housing direct and guaranteed home loans through March 31, 2021, to help rural homeowners affected by the COVID-19 pandemic.
The moratorium prohibits:
- The initiation of foreclosures or completion of foreclosures already in process, excluding on vacant and abandoned properties.
- Evictions of homeowners from properties bought with a USDA direct or guaranteed home loan.
USDA direct home loan borrowers who have been impacted by the pandemic may request payment forbearance for up to one year. The initial forbearance period may then be extended for an additional year at the borrower's request.
Lenders of USDA guaranteed home loans should continue to provide borrowers impacted by the pandemic with relief in accordance with the CARES Act by offering forbearance of the loan payment for up to 180 days. The initial forbearance period may then be extended up to an additional 180 days at the borrower's request. Loan servicers seeking to assist USDA guaranteed loan borrowers may also pursue any of the relief options referenced in Chapter 18 of the Technical Assistance Handbook-1-3555.
During the forbearance period, no accrual of fees, penalties, or interest may be charged to the borrower beyond the amounts calculated as if the borrower had made all contractual payments in a timely fashion.
Upon completion of the forbearance, if the borrower can resume making regular payments, they will be offered either an affordable repayment plan or term extension to defer any missed payments to the end of the loan. If the borrower is unable to resume making regular payments, the borrower will be evaluated for all available options outlined in HB-1-3555. The special relief measures outlined in Chapter 18, Section 5 “Assistance in Natural Disasters” will apply. These options include term extensions, capitalization, and a mortgage recovery advance.
Questions regarding guaranteed home loan policy and this announcement may be directed to the National Office Division at firstname.lastname@example.org or (202) 720-1452.
For more information on USDA Rural Development's actions to support customers impacted by COVID-19, visit www.rd.usda.gov/coronavirus.