The Federal Housing Administration has quietly extended its special forbearance program for unemployed homeowners who continue to make partial payments on their FHA-insured mortgages.
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Special forbearances for unemployed borrowers are “hereby extended until amended, superseded or rescinded,” the mortgagee letter says.
The special program is designed to give homeowners a chance to stay in their homes until they land a new job and hopefully resume making their regular mortgage payments.
The forbearance is terminated if the borrower stops making partial payments or the servicer learns the borrower is no longer seeking employment.
Initially, FHA required servicers to verify the borrower had a good payment record and stable employment history to qualify.
But the agency dropped that verification requirement two years ago.
