On October 1, 2020 the FHA announced that due to ongoing concerns related to COVID-19, there would be a temporary partial waiver for non-borrowing spouses (NBS) of Reverse Mortgage borrowers to allow additional time after the death of the borrower to establish legal ownership or other ongoing legal right to remain in the property.
Prior to issuance of the temporary partial waiver, an eligible non-borrowing spouse (NBS) had 90 days to establish such right to remain in the property.
The temporary partial waiver, which is in effect for 12 months from October 1, 2020, will allow the non-borrowing spouse (NBS) to enter a deferral period and avoid foreclosure.
Please reach out to Greenspoon Marder to further assist on the applicability of this NBS temporary partial waiver on your HECM reverse mortgage loans currently in default.
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