Hud sent this message out Monday,
"Notice on Foreclosure Moratorium Activity:
This is a summation of the information conveyed in the two industry calls of December 1 and 2, 2010. These calls served as communication to industry partners of HUD's requirements regarding interest curtailment due to the recent foreclosure moratorium activity. A mortgagee letter will be forthcoming publishing HUD's requirements. However, these requirements are not introducing new policy, rather they will re-emphasize existing policy guidelines previously published on foreclosure moratoriums.
The Department has been advised that due to a recent change in state laws or state mandated moratoriums, some foreclosures had to be cancelled or stopped and rescheduled to complete all of the new legislative requirements. HUD will bear the cost of any delays in the foreclosure process when the servicer had to comply with moratoriums that were beyond their control, and where the servicers were not cited for non-compliance. A ninety (90) day extension is provided to mortgagees where the initial legal action to commence foreclosure has been cancelled to comply with a new state legislation. Where the mortgagee experiences a delay that is beyond its control, because the mortgagee is prohibited from initiating foreclosure due to state law or federal bankruptcy, the mortgagee will be in compliance if foreclosure is commenced within 90 days of the expiration of the prohibition.
Below is a link to the FAQ's that may answer some of your questions on extensions of time.
http://www.hud.gov/offices/hsg/sfh/nsc/faqextns.cfm"
It will be interesting to see where this takes us next year.
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