HUD released Mortgagee Letter 2005-45, dated November 22, 2005, extending the moratorium on foreclosures for the victims of Hurricanes Katrina and Rita.

The moratorium covers all foreclosure initiations and foreclosures in process for properties located in the Presidentially-declared disaster areas designated for Individual Assistance.  The moratorium will expire on February 28, 2006.

Only properties or mortgagors that are directly affected by the disasters are eligible for the extended moratorium.

There is no automatic extension of the foreclosure moratorium for properties located outside the individual assistance areas.  However, if a mortgagee has been unable to assess property condition or locate a mortgagor in any of the counties designated as Presidentially-declared disaster areas, and they believe it is in the best interest of the government to delay foreclosure of initiation of foreclosure, they may submit form HUD 50012, "Mortgagee's Request for Extension of Time", indicating the name of the disaster and the reason the extension is needed.

To review the complete Mortgagee Letter, click the following link:

HUD ML 2005-45 Moratorium Extensions to Assist Victims of Hurricanes