USDA Extends Foreclosure and Eviction Moratorium for Single Family Housing Direct and Guaranteed Loan Borrowers

Name
Erin McDuff
Phone
Release Date
Jun 25, 2021

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 loan borrowers through July 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.

Mortgage Payment Forbearance:

Rural Development is also offering relief options for homeowners with a USDA direct or guaranteed mortgage loan who are struggling to make their mortgage payments due to the pandemic.

During any approved payment forbearance period, no accrual of fees, penalties, or interest may be charged beyond the amounts calculated as if the homeowner had made all payments in a timely fashion.

Upon completion of a forbearance period, if the homeowner can resume making regular payments, they will be offered either a reamoritization to incorporate the cost of the missed payments into the remaining monthly mortgage payments or a term extension to defer any missed payments to the end of the loan. If the homeowner is unable to resume making regular payments, they will be evaluated for all available assistance options, including term extensions, capitalization, and a mortgage recovery advance.

Single Family Housing Direct Loans

USDA direct home loan borrowers who experience financial hardship either directly or indirectly due to the pandemic may submit requests through June 30, 2021, for an initial forbearance period of up to 180 days. The homeowner may then request an extension of up to an additional 180 days.

Homeowners who received an initial forbearance under the CARES Act before June 30, 2020, may be granted up to two additional three-month forbearance periods. The homeowner must request each extension individually.
To inquire about forbearance on a USDA direct home loan, contact Rural Development's Customer Service Center at 1-800-793-8861 or rdquestion@stl.usda.gov.

Single Family Housing Guaranteed Loans

Lenders of USDA guaranteed home loans may continue to grant mortgage payment forbearance through September 30, 2021, to those who request forbearance as a relief option due to the COVID-19 pandemic.

The initial forbearance period may be up to 180 days. The homeowner may then request an extension of up to an additional 180 days. Homeowners that were approved for forbearance under the CARES Act prior to June 30, 2020, may be granted up to two additional three-month payment forbearances

Lenders 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, including the special relief measures outlined in Section 5 “Assistance in Natural Disasters.”

Questions regarding guaranteed home loan policy and this announcement may be directed to the National Office Division at sfhglpservicing@usda.gov or (202) 720-1452.

For more information

For more information on USDA Rural Development's actions to support customers impacted by COVID-19, visit www.rd.usda.gov/coronavirus.

For questions about existing USDA direct mortgage loans, contact Rural Development's Customer Service Center at 1-800-793-8861 or rdquestion@stl.usda.gov.
 
For questions about USDA guaranteed home loans, contact the National Office Division at sfhglpservicing@usda.gov or (202) 720-1452.