In the wake of disaster, the last thing you should be thinking about is a pending foreclosure. The Federal Housing Administration (FHA) is reminding all of its mortgage lenders that a 90-day freeze on foreclosures automatically goes into effect on FHA-insured homes in Presidentially Declared Disaster Areas. President Obama has declared certain counties in Alabama, Oklahoma, Mississippi, Georgia, Tennessee, Arkansas, Iowa, Missouri and the Commonwealth of Kentucky major disaster areas. Not only does this allow HUD to place a 90-day freeze on FHA-insured homes in foreclosure but it allows the Department to speed federal disaster assistance to the affected areas.
Here’s what it means to you, the homeowner. If you…
- live in one of the areas that has been declared a disaster by the President
- have an FHA-insured mortgage loan
- have problems making your mortgage payments
your lender cannot foreclose for any reason for at least 90 days and must make special efforts to help you keep your mortgage and your home. If you have questions, contact your lender/servicer or call HUD’s National Servicing Center Hotline: 877 – 622 – 8525.
Homeowners in the affected areas are also eligible for HUD’s Section 203(h) program which provides FHA insurance to disaster victims who have lost their homes and face the task of rebuilding or buying another home. The Section 203(k) program allows homeowners who have a damaged home to finance the rehabilitation of their existing single-family home.
HUD also offers the Section 108 program to state and local governments for housing rehabilitation, economic development and repair of public infrastructure. State and local government are also given the flexibility to redirect millions of dollars from the Community Development Block Grant and HOME program to address critical needs, including housing and services for disaster victims.