Puerto Rico Reverse Mortgage Foreclosure Timeline Gets an Extension from FHA
The Federal Housing Administration will extend the foreclosure timeline for reverse mortgages in Puerto Rico and the U.S. Virgin Islands, according to a recent report. The extension will specifically be tailored to Presidentially Declared Major Disaster Areas, following the horrendous Hurricane Maria.
"The news comes amid multiple public calls for an extension, with advocates in New Jersey calling on companies with mortgage holdings in Puerto Rico to hold off on foreclosures until the island can fully recover from the devastating storm, which made landfall on September 20," according to Reverse Mortgage Daily.
"However, as Finance of America Reverse president Kristen Sieffert told NJ.com, lenders of FHA-backed products have little choice but to follow the government’s timeline for foreclosures, whether they want to initiate proceedings on vulnerable homeowners or not."
The extension brings much needed help to reverse mortgage borrowers. Meanwhile, experts said that forward mortgage borrowers aren't doing as well in the disaster situation.
The foreclosure timeline has been extended until May 18, 2018 for "loans that became due and payable for reasons other than the death of the last surviving borrower and non-borrowing spouse," according to the report.
To learn more about the extension and how it will effect reverse mortgage borrowers in Puerto Rico and the U.S. Virgin Islands, click on the image above.
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