The update is aimed mainly at lenders, servicers and other participants in the FHA program. It does not guarantee FHA approval, create a universal new loan benefit or impose a blanket pause on foreclosures.

What changed in the FHA handbook

FHA added definitions for three types of employment documentation used in underwriting: Written Verification of Employment, Electronic Verification of Employment and Reverification of Employment. The agency said the definitions are intended to clarify expectations, particularly when third-party vendors are involved, and reduce compliance problems.

For applicants, the practical effect may be more specific instructions about which employment records a lender will accept or whether backup documents are needed. The change does not eliminate FHA underwriting requirements or guarantee that an applicant will qualify.

The handbook also clarifies that Federal Home Loan Bank Homeownership Set-Aside funds may be provided as either a grant or secondary financing. Those structures are different: secondary financing can create another repayment obligation or lien, while a grant generally is not structured as a repayable second mortgage.

Assistance is not automatic for every FHA borrower. Availability depends on participating programs, lender practices and the borrower’s circumstances. Applicants should ask the lender whether a program is available and request the terms in writing.

What changed for borrowers in default

FHA refined its mortgage-status language by removing a maximum arrearage limitation for certain Outside the Waterfall loan modifications. The update also revised foreclosure-servicing guidance. Among other changes, FHA said mortgagees must not file an Extension and Variances Automated Requests System request for automatic extensions.

FHA added Appendix 6.1, which lists automatic extensions to HUD’s foreclosure-initiation timeline. That appendix is not a nationwide foreclosure moratorium, and it does not mean every borrower receives extra time. Whether an extension applies depends on the loan, servicing history and the specific category covered by the FHA guidance.

Borrowers should not assume that the handbook revision changed a personal deadline. Anyone behind on an FHA mortgage should contact the servicer promptly and ask for the applicable loss-mitigation review process and foreclosure-initiation timeline in writing.

Why the servicing guidance matters

Separate federal data show that mortgage distress and foreclosure-prevention work remain active in the broader housing system. The Federal Housing Finance Agency reported that Fannie Mae and Freddie Mac completed 15,855 foreclosure-prevention actions in May 2026, including 6,616 permanent loan modifications. The Enterprises’ serious-delinquency rate was 0.58% at the end of May.

Those figures concern loans backed by the mortgage Enterprises, not FHA-insured loans, so they are not FHA-specific delinquency measures. They provide broader context for why accurate servicing procedures and clear communication about loss-mitigation options matter to homeowners facing payment problems.

Questions to ask your lender or servicer

• Which employment documents will you accept for my application?
• Are you using electronic employment verification, and what backup documents might be required?
• Is Federal Home Loan Bank Homeownership Set-Aside assistance available through this lender?
• Would the assistance be a grant or secondary financing?
• If I am behind, what loss-mitigation options are being reviewed?
• What foreclosure-initiation timeline applies to my loan?
• Does a specific automatic-extension category apply to my case?
• Can you provide the review status, deadlines and required documents in writing?

Keep copies of applications, income records, payment histories, notices and communications with the lender or servicer. If you need help, the Consumer Financial Protection Bureau points homeowners to HUD-certified housing counselors and says legitimate resources generally do not charge an upfront fee. Case-specific foreclosure questions may also require qualified legal aid or another licensed attorney.

What to watch next

Borrowers should watch for additional FHA servicing instructions, implementation details from lenders and future revisions to Handbook 4000.1. HUD also said the August 12 update did not include provisions related to the 21st Century ROAD to Housing Act because those provisions remained under evaluation.

The safest takeaway is that the handbook update may change how lenders and servicers administer FHA loans, but it does not erase missed payments, guarantee a modification or stop every foreclosure. Borrowers facing payment problems should contact the servicer early, keep a written record and seek help from a HUD-certified housing counselor or qualified legal-aid provider.

Sources

• FHA INFO 2026-18 — Handbook 4000.1 update
• FHFA May 2026 foreclosure-prevention report
• CFPB Housing Insecurity guidance

The U.S. Department of the Treasury issued updated closeout guidance on May 4, 2026, and released HAF compliance data through the first quarter of 2026 on July 21. The updates show that the program is entering its final assistance period.

September 30 is not a universal application deadline

Treasury provided $9.961 billion to states, U.S. territories and Tribal entities through the Homeowner Assistance Fund. Created under the American Rescue Plan, HAF was intended to help homeowners facing financial hardship connected to the COVID-19 pandemic and reduce mortgage delinquency, foreclosure, utility loss and displacement.

The federal period of performance ends September 30, 2026. Treasury’s closeout checklist says HAF recipients and subrecipients may not obligate award funds after that date for eligible program activities.

The closeout rules allow a limited 120-day liquidation period after September 30 for payment processing and final reporting. Treasury’s checklist identifies January 28, 2027, as the deadline for recipients’ final reports. That period does not extend the program for new prospective assistance. Obligations must be made by September 30, and Treasury says funds cannot cover housing-related costs for periods after that date or repair work occurring after September 30.

For homeowners, the practical deadline may come sooner. The Consumer Financial Protection Bureau says each state or territory operates its own program, with additional programs operated by Tribes, the Department of Hawaiian Home Lands and the District of Columbia. Funds are limited, and programs may stop accepting applications when their money is exhausted. Some may use waitlists or restrict assistance to particular expenses.

What the fund may cover

Depending on local rules, HAF assistance may help with:

• Current or past-due mortgage payments
• Property taxes
• Homeowners insurance
• Homeowners association fees
• Electricity, gas, water, wastewater and other utilities
• Internet service
• Certain home repairs

Not every program covers every expense on that list. The CFPB says assistance is usually provided as a grant, but some local programs may require repayment in specified circumstances, such as selling the home before a stated date. Submitting an application also does not guarantee payment if a program does not have enough money to fund every eligible applicant.

Who may qualify

Core requirements generally include a COVID-19-related financial hardship, assistance for a primary residence and compliance with the local program’s income rules. Applicants may need to document a hardship that occurred after January 21, 2020, such as job loss, reduced income, increased health-care costs or added caregiving expenses.

Income limits vary. CFPB guidance says many programs use a limit tied to 150% of area median income or $79,900, whichever is higher, while some programs apply lower limits or additional requirements. Homeowners should check the rules for their specific state, territory or Tribal program.

What homeowners should do now

Start by locating the HAF program for your state, territory or Tribal government. Confirm whether it is accepting applications, operating a waitlist or closed. Review the local rules before assuming that a particular bill, repair or type of property qualifies.

Gather mortgage statements, delinquency notices, property-tax records, insurance bills, utility or HOA documents, repair estimates and proof of income or hardship. If mortgage assistance is involved, contact your mortgage servicer and ask whether it participates in the local program and how an approved payment will be credited.

If you are behind on payments or facing foreclosure, do not assume that filing a HAF application automatically stops the process. For example, the CFPB says servicers for mortgages backed by Fannie Mae or Freddie Mac are generally required to pause foreclosure activities for up to 60 days after the HAF program notifies them of an application. For FHA-, VA- and USDA-backed loans, agencies strongly encourage a pause after notification but do not require it in the same way. Some state HAF programs may impose additional requirements.

Tell your servicer that you applied, ask whether foreclosure activity can be paused, and request information about loss-mitigation options. A HUD-approved housing counselor can help with the application, delinquency, forbearance and foreclosure questions, often at little or no cost.

Homeowners should also watch for scams. The CFPB says there is no cost to apply for HAF and warns against companies that demand an upfront fee to obtain mortgage relief or submit a government application.

Sources

• U.S. Treasury — Standard Closeout Checklist for HAF Awards
• CFPB — Get Homeowner Assistance Fund Help

For residents, relocators, and property owners: if you receive a certified-mail notice connected to one of these lien/foreclosure actions, keep it. The ordinance packets describe a 90-day redemption period that’s tied to the foreclosure sale/certificate timeline, not the committee meeting date.

The legal framework: ADM-14.10 governs redemption

The ordinances cite Portland Administrative Rule ADM-14.10, which sets out the City’s collection and foreclosure process—including how redemption works after a foreclosure sale.

• Only people with a recorded interest (or their legal representative) may redeem.
• Purchasers have no redemption rights.
• After a foreclosure sale, the property is not eligible for installment payments or a payment plan; redemption requires payment in full.
• Redemption must be paid to the City Treasurer, in forms permitted by ADM-14.10 (United States legal currency or a cashier’s check).

Parcel-by-parcel snapshot: notice windows, redemption, and expected recovery

Each ordinance packet includes (1) a certified-mail notice requirement with a specific mailing date window in June/July 2026, (2) the 90-day redemption period language, and (3) an “expected to be recovered” amount based on lien balances as of June 30, 2026. The ordinances also caution that actual cost recovery may differ.

7545 NE Sandy Blvd (Ordinance document 2026-247)

• Certified-mail notice window: mailed between June 8, 2026 and July 8, 2026 (return receipts required).
• Redemption timing (as stated in the ordinance): may redeem within 90 days from the date of the foreclosure sale.
• Expected to be recovered (as of June 30, 2026): $20,495.06.

6307 N Montana Ave (Ordinance document 2026-249)

• Certified-mail notice window: mailed between June 7, 2026 and July 8, 2026 (return receipts required).
• Redemption timing (as stated in the ordinance): may redeem within 90 days from the date of the foreclosure sale.
• Expected to be recovered (as of June 30, 2026): $335,481.60.

N Columbia Blvd (Ordinance document 2026-250)

• Certified-mail notice window: mailed between June 8, 2026 and July 8, 2026 (return receipts required).
• Redemption timing (as stated in the ordinance): may redeem within 90 days from the date of the foreclosure sale.
• Expected to be recovered (as of June 30, 2026): $12,754.37.

What neighbors should watch next

• These are agenda ordinance items to initiate foreclosure proceedings. The practical milestones that affect owners and nearby residents come later—especially the timing of any foreclosure sale.
• Redemption deadlines depend on the sale/certificate timeline. So the concrete question isn’t “what date is on the committee agenda,” but “what date starts the redemption period” on your certified notice (and any follow-up City mail).

If you’re an owner or tenant with questions after receiving a lien/foreclosure notice, the most useful first step is to locate the dates and deadlines printed in the certified letter and compare them against the ADM-14.10 redemption rules described above.

Sources

• Ordinance: Initiate foreclosure action on 7545 NE Sandy Blvd (delinquent City liens) — document 2026-247