What is the Foreclosure Extension Law?
The Foreclosure Extension Law is also known as the “Extension of Time” law, according to the U.S. Department of Housing and Urban Development, or HUD. This law is part of legislation designed to mitigate the effects of foreclosure on individuals and communities, particularly regarding properties that become abandoned due to foreclosure.DefinitionThe Foreclosure Extension Law, according to HUD, is a 90-day waiting period, or extension, before foreclosure can be carried out by a legitimate creditor. The “Extension” law is part of HUD’s Loss Mitigation Program, a government-designed program that assists homeowners during a foreclosure action and via Federal Housing Administration reforms.Time FrameAccording to HUD, this extension can only be offered concerning defaulting mortgages where the time frame of a legal foreclosure was done in a timely manner. The foreclosure sale and/or auction of the property is then stopped in order to comply with the Foreclosure Extension Law.Request ProcessT
