Ballard Spahr LLP

The Centers for Disease Control and Prevention’s (CDC) eviction moratorium expired on July 31, 2021. Meanwhile, at President Biden’s request, the Acting Director of the Federal Housing Finance Agency, and the Secretaries of the U.S. Department of Agriculture (USDA), U.S. Department of Housing and Urban Development (HUD), U.S. Department of Treasury, and U.S. Department of Veterans Affairs (VA) announced the extension of their foreclosure-related eviction moratoria until September 30, 2021.

In Mortgagee Letter 2021-19, dated July 30, 2021, HUD advises that the extension of its foreclosure-related eviction moratorium applies to all FHA Title II single-family forward and Home Equity Conversion (reverse) mortgage loans, other than FHA loans secured by vacant or abandoned properties. HUD stated that it extended the foreclosure-related eviction moratorium to “avoid displacement of severely distressed borrowers” and “provide [b]orrowers additional time to access federal, state, or local housing stability resources or to consult with HUD-certified housing counselors.” HUD also advises that during the eviction moratorium, a lender or servicer may not initiate or continue with an eviction to acquire possession of a foreclosed property.