| USDA Expiration of Foreclosure Moratorium Extensions for Borrowers Affected by Hurricanes |
| Friday, 01 September 2006 | |
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The USDA has released an announcement titled " Expiration of Foreclosure Moratorium Extensions for Borrowers Affected by Hurricanes Katrina, Rita and Wilma". This announcement includes notice that the foreclosure moratorium expired on August 31st 2006. Loan holders remain responsible when to initiate a foreclosure and for terminating a defaulted loan once verifying that the cause is not a result of the disaster. Proper review is still required prior to initiating foreclosure and sale to ensure postponement or cancellation is not warranted.
The USDA Mortgage Recovery Advance
Program will remain in effect till
April 30th, 2007. For additional information regarding the program,
servicers are to contact Holders and servicers are encouraged to continue to extend forbearance to all borrowers in distress who own properties in the counties/parishes declared eligible for Individual Assistance due to the aforementioned trio of Hurricanes. Holders and servicers should fully document their servicing actions prior to submission to the agency for approval. Documentation is to include the following;
Questions regarding this notice should be directed to Stuart Walden 202-720-1452. For additional information on the USDA R.D. hurricane relief measures, please click here. To view the notice in its entirety, please click on the following.
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