A recent article had indicated that HUD had granted an additional 30-day moratorium on federal mortgage foreclosures for approximately 3,000 mortgagors who may have been victims of real estate flipping or other improper loan process. As explained by a HUD representative below, this was not an official moratorium but rather was an attempt to address certain loans that were in foreclosure but were likely to reinstate.

Robert

From: JIM_SORRENTINO@HUD.GOV
Subject: Re: Fwd: FW: HUD halts foreclosures for 30 days
To: robert.klein@safeguardproperties.com
Date: Tue, 27 Feb 2001 09:55:50 -0500

Hi Robert,

Here is the story on Baltimore: there were a number of loans covered by the original foreclosure moratorium that were still in default, but seemed close to reinstatement, or at least close to eligibility for the home-retention loss mitigation measures. For these loans (and only these loans), HUD contacted the lenders and requested that they continue to
forbear from foreclosure for another 30 to 60 days to give the borrowers additional time to reinstate or qualify for loss mitigation.

Please feel free to share this information with anyone who asks. I hope this clears it up!

Jim