Basically, as a result of the several state investigations of foreclosure activity, some states have requested the moratorium of all foreclosures including HUD (i.e., FHA mortgages). I am sure some similar moratorium provisions are effective on VA loan foreclosures (which are a very few) and quite probably, Fannie Mae and Freddie Mac foreclosures.
Official word from HUD was...
"The Department (HUD) has been advised that due to a recent change in State Laws or State mandated moratoriums, some foreclosures had to be cancelled or stopped and rescheduled to complete all of the new legislative requirements... A ninety (90) day extension to commence foreclosure is provided to those mortgagees where the initial legal action to commence foreclosure has been cancelled to comply with a new State legislation....This extension is provided under the authority of 24 CFR 203.355." And the "extension" means it's "tacked onto" the existing moratorium laws in the appropriate state.
Here is a link to some answers to questions: http://www.hud.gov/offices/hsg/sfh/nsc/faqextns.cfm
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