On Mar. 6, HUD issued letter to extend moratorium re CAL disaster.
HUD issued Mortgagee letter 2025-07 in order to extend CAL foreclosure moratorium.
Applies to FHA Title II Single Family and Home equity conversion mortgage (HECM).
Follows HUD Jan. 2025 implementation of federal aid for California, see #240019.
Foreclosure Moratorium
Extends the automatic foreclosure moratorium in Moratorium on Foreclosures (III.A.2.n.ii) for Los Angeles County, California, provides relief for FHA-insured HECMs.
Applies to the initiation of foreclosures and to completion of foreclosures in process.
Deadlines for legal action, reasonable diligence extended 180 days from Jul. 7, 2025.
If foreclosure not initiated, mortgagee to submit extension request to HUD foreclosure-related deadlines through Home Equity Reverse Mortgage Information Technology.
Applies if mortgagee prohibited from performing required activity due to moratorium.
Effectiveness
The moratorium will remain in effect through Jul. 7, 2025.
