The Department of Housing and Urban Development has announced federal assistance for victims of recent flooding in Louisiana. According to HUDNo.16-122, “HUD will speed federal disaster assistance to the State of Louisiana and provide support to homeowners and low-income renters forced from their homes due to severe storms and flooding.”
Earlier, the press release states, the President, “issued a disaster declaration for Acadia, Ascension, Avoyelles, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis, Lafayette, Point Coupee, St. Landry, St. Martin, St. Tammany, Vermilion, Washington and West Feliciana” as well as East Baton Rouge, Livingston, St. Helena and Tangipahoaparishes. One of the benefits of this act is that victims of the flooding have access to foreclosure relief and other help.
Families who may have been forced from their homes need to know that help is available to begin the rebuilding process, said HUD Secretary Julian Castro. Whether its foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.
Affected homeowners with FHA mortgages may be granted a 90-day moratorium on foreclosures as well as loan forbearance. There is also an option for home owners to apply for loans and refinance loans to help repair homes damaged by flooding in the area. “HUD’s Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs”.
According to the press release, another type of FHA loan, the 203k, is also available. “HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home”.
Borrowers affected by flooding in the area should get in touch with their lender as soon as possible; it’s also strongly recommended to contact FEMA and state/local agencies to see what other relief and assistance may be available. Borrowers are urged not to make hasty decisions on insurance settlements or related issues. For more information on disaster relief resources, HUD has a page on its official site with plenty of information: http://portal.hud.gov/hudportal/HUD?src=/info/disasterresources.