Let's discuss forbearance and the extension that just went through.

You may already be aware that there are programs out there to help homeowners that are not able to make their mortgage payment during COVID-19 to help them with a forbearance program so that they don't have to pay those mortgage payments now but they would be due at a later time.

Previously, it expired back in December of 2020, but here we are in January, and they did extend the forbearance program. FHA extended options for single family homeowners financially impacted by COVID-19. Extensions ensure borrowers can continue to seek assistance and avoid eviction and foreclosure while maintaining temporary policy flexibility for lenders and servicers.

The Federal Housing Authority, FHA, announced that it is extending the foreclosure and eviction moratorium for single family FHA insured mortgages for an additional two months through February 28th of 2021. This is the fourth extension that FHA has given to the eviction and foreclosure moratorium.

The moratorium prohibits servicers from proceeding with foreclosure or initiating a foreclosure procedure and foreclosure-related eviction actions for FHA insured, single-family, forward and reverse type mortgages, except for those that have already been legally verified as vacant or abandoned properties.

FHA encourages borrowers with an FHA insured type mortgage who can make their mortgage payment to continue to do so. Those who are struggling financially because of COVID-19 should engage a conversation with their servicer to find out what is available to them through that provider, and when I say servicer, I'm talking about the entity that you were sending your monthly mortgage payments to.

FHA does provide COVID-19 forbearance loss mitigation options to assist borrowers with bringing their mortgage current. I want to note on this, FHA does not require a lump sum payment when the forbearance program is over if your loan is an FHA type loan.