Specific Foreclosure Holds
Lenders may receive notices from the Department requiring a temporary
hold on foreclosure for the loans listed. This action, when taken,
is necessary to allow sufficient time for HUD to complete its review
of the subject loans relative to Predatory lending or other issues.
completion of the individual reviews, HUD will notify lenders that
the foreclosure process may continue. This release letter will state
that foreclosure must be commenced (or recommenced) within 90 days
of the date of the release letter. Please note that this is similar
to suspensions resulting from bankruptcy actions.
Fee Reimbursement - All Moratoriums and Foreclosure Holds
attorney fee reimbursement, HUD will treat the foreclosure suspensions
required by all moratoriums and/or foreclosure holds similar to
the suspensions resulting from bankruptcy actions. Mortgagees may
claim the actual attorney fees incurred, up to a maximum of 75%
of HUD's Attorney Fee Schedule for a foreclosure that was not completed
due to a moratorium. For the foreclosure action that is completed,
mortgagees may claim their actual attorney fees up to the maximum
amount noted in HUD's Attorney Fee Schedule (see
Mortgagee Letter 05-30
with Attachments 1
depending on the date and type of legal action taken).