November 8, 2017
The FHA and HUD have announced extended foreclosure relief for victims of recent hurricanes. According to the FHA/HUD official site, those in federally declared disaster areas created by Hurricane Irma, Hurricane Harvey, and Hurricane Maria will have time added to the original 90-day foreclosure moratorium.
According to the HUD press release, “FHA is extending this foreclosure relief in Presidentially declared counties and municipalities where the Federal Emergency Management Agency (FEMA) is operating its Individual Assistance Program.”
“Under the expanded moratorium, FHA is instructing lenders and servicers to suspend all foreclosure actions against borrowers until the following dates:
Hurricane Harvey – February 21, 2018
Hurricane Irma – March 9, 2018
Hurricane Maria – March 19, 2018”
Who Qualifies For Extended Foreclosure Relief?
According to HUD, those with FHA-insured mortgages qualify for the extended foreclosure relief if they meet the following conditions:
- The household lives within the geographic boundaries of a Presidentially declared disaster area;
- A household member of someone who is deceased, missing or injured directly due to the disaster; or
- The borrower’s ability to make mortgage payments is directly or substantially affected by a disaster.
Borrowers at risk of foreclosure should contact the lender as soon as possible to make arrangements to avoid losing the home. Depending on circumstances, an FHA borrower may qualify for loan forbearance, refinancing, loan modification or other measures used to prevent the mortgage from going into foreclosure.
The key to foreclosure avoidance, with or without the FHA and HUD’s extension as described above, is to act as soon as possible. The longer a home owner waits to make arrangements with the lender, the fewer options the home owner has.
Acting before you miss even a single monthly mortgage payment can make a big difference in the types of foreclosure avoidance options available. Some of those options are not open to those who have missed payments, others may be the ONLY option depending on how many payments have been missed.
If you are at risk of foreclosure, contact your lender today.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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