The U.S. Department of Housing and Urban Development (HUD) has announced that around 2 million homeowners with Federal Housing Administration mortgages were able to stay in their homes through the COVID-19 pandemic. when doing so was often a matter of life and death.
Over 21,000 FHA borrowers in Oregon avoided foreclosure, says the release.
During the period of time from March 2020 to December 2022, FHA borrowers whose ability to make mortgage payments was affected by the COVID pandemic were able to get a COVID-19 forbearance or a more permanent solution - such as a loan modification that allowed them to avoid foreclosure.
In Oregon, 12,500 borrowers had forbearance assistance and 8,600 borrowers had home retention support.
“When the COVID-19 pandemic hit, many families had their lives upended,” said HUD Northwest Regional Administrator Margaret Salazar.
That’s why we deployed every tool we could to keep people in their homes, including offering options for FHA borrowers. Those actions paid off and in the Northwest over 85,000 borrowers – and their families – did not have the added trauma of losing their homes during the pandemic.
FHA announced last week that the COVID-19 toolkit has been extended to help all borrowers struggling to avoid foreclosure. The tools will be available for at least the next 18 months.
“Although the pandemic has ended, the economic effects will remain a challenge for the foreseeable future,” said HUD Secretary Marcia L. Fudge. “These impactful and effective foreclosure prevention tools will help struggling borrowers find the right option to help them get back on their feet and keep them in their homes. These tools have been so successful already, which is why FHA worked to enhance them further and include more borrowers.”
More information about HUD and its programs is available HERE