On June 7th, the USDA released a new Letter announcing the continuation of the foreclosure moratorium. In addition, the Letter reinstates and extends the timeframe that borrowers have to correspond in writing to their lender of their intentions for resolving the delinquency.

Included in this Letter;

• Extended Moratorium on Foreclosure - The moratorium on foreclosure for properties in the FEMA Declared Disaster Areas as eligible for Individual Assistance is extended until June 30th 2006.
• Extended Moratorium Restrictions - Reiteration of previously outlined restrictions (available by clicking here) with extensions to June 30th, 2006
• New Hurricane Relief Option - Review of the USDA Mortgage Recovery Advance Program
• Continued Forbearance - Reiteration of previously outlined guidance (available by clicking here)
• Credit Reporting - Encouragement of the continuation of credit bureau reporting on loans securing affected properties and borrowers.
• Servicer Default and Quarterly Reporting - Servicer may contact the USDA for further guidance if operations were impacted by the hurricanes regarding consideration for late default or quarterly reporting.
• Documentation - reminder to fully document all actions to facilitate possible future loss claims actions.
• Expiration - The Letter expires June 30th, 2006

To view the Letter in its entirety please click on the following link

 Foreclosure Moratorium Extensions for Borrowers.pdf