Tucson housing market saw reprieve from foreclosures in 2020 | Business News

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“Providing immediate protection for borrowers with HUD-insured or guaranteed mortgages is an important first step in addressing larger, systemic housing challenges,” said Janet Golrick, acting Federal Housing Commissioner.

The moratorium prohibits the initiation or execution of foreclosures and evictions in connection with HUD-insured or guaranteed single-family forward and reverse mortgages, with the exception of those secured by legally vacant and abandoned real estate.

Mortgage companies are required to grant a deferral of up to six months if a borrower in financial distress due to COVID-19 applies for such assistance, and up to an additional six months for a borrower who has an extension of the original Deferral requested.

The concern is what will happen to struggling homeowners when the moratorium expires.

“There is a backlog of foreclosures – loans that were in foreclosure prior to the moratorium, loans that would have defaulted under normal circumstances, and loans whose borrowers have been in financial distress due to the pandemic,” Sharga said. “While it is still very unlikely that we will see another wave of foreclosures like the one we saw during the Great Recession, we really won’t know how big that backlog is until the government programs expire.”

The Tucson area has been steadily recovering from foreclosures since 2012 when numbers began to decline dramatically after peaking in March 2011 when 791 homes were foreclosed that month alone.

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