Articles in Category: FHA Disaster Assistance

November 8, 2021

FHA Mortgage Relief Still Available For Those Affected By COVID

If you have trouble making your monthly FHA mortgage loan payments, you are not alone. There seem to be so many borrowers struggling that the FHA and HUD have announced multiple extensions to COVD-19 mortgage forbearance policies. Indeed, there have been so many updates and extensions to FHA loan policy in this area that it’s hard to keep it all straight. What’s the most current guidance from the FHA and HUD regarding those who need FHA loan forbearance due to COVID-19 pandemic issues? On September 27, 2021, the FHA issued a Mortgagee Letter, FHA ML 21-24, which explains to lenders the current FHA policy toward such mortgage relief: “Upon Borrower request, Mortgagees must offer a COVID-19 Forbearance to any Borrower that experiences an adverse impact on their ability to make | more...

October 6, 2021

Federal Disaster Relief For FHA Borrowers In Montana, New Hampshire

By Joe Wallace

The 2021 disaster season has seen a large number of federal disaster area declarations; that combined with a global pandemic and it’s easy to see that mortgage relief in any form is a much-needed thing. In October 2021, the FHA and HUD announced foreclosure relief in areas of New Hampshire and Montana affected by natural disasters. In New Hampshire, those areas included the counties of Cheshire and Sullivan which were harmed by severe storms and floods. In Montana, areas affected by something known as the Richard Spring Fire received a major disaster declaration for Rosebud County and the Northern Cheyenne Indian Reservation. In declaring these areas as federal disaster areas, HUD is able to offer foreclosure relief in those areas–a 90-day moratorium on foreclosures of FHA-insured mortgages starting on the | more...

October 1, 2021

FHA Mortgage Relief Announced For Vermont Disaster Areas

By Bruce Reichstein

In many cases, the FHA and HUD make announcements about disaster relief after tropical storms, hurricanes, forest fires. But you don’t have to experience a Category 3 hurricane to be severely affected by weather; one excellent example of this comes with the HUD announcement of federal disaster assistance for parts of the State of Vermont that were in the path of severe storms and flooding at the end of July 2021. On September 29, 2021, there was a Presidential Major Disaster Declaration for two Vermont counties–Windham and Bennington. Thanks to that Presidential declaration, HUD has offered an automatic 90-day foreclosure moratorium for those two counties–this affects those with FHA mortgages, “commenced on the date of the Presidential major disaster declaration, and foreclosures of mortgages to Native American borrowers guaranteed under | more...

September 28, 2021

FHA And HUD Announce New Foreclosure Relief Measures For Those Recently Affected By COVID-19

By Joe Wallace

The Department of Housing and Urban Development has announced new COVID-19 relief measures for those with FHA mortgages. This news comes on the heels of a previously issued FHA Mortgagee letter, ML2021-19, “Extension of the Foreclosure-Related Eviction Moratorium and Expiration of the Foreclosure Moratorium in Connection with the Presidentially-Declared COVID-19 National Emergency” which contained the following statement: “HUD’s foreclosure moratorium is set to expire on July 31, 2021, and HUD is not extending that moratorium further”. That statement is true for many; the FHA and HUD have added more help but it is intended for those who have experienced recent financial difficulty because of COVID-19. For those who have already taken advantage of this help, the loan forbearance offered borrowers a chance to save their homes even during the prolonged | more...

September 10, 2021

Your FHA Mortgage And Natural Disasters In 2021

By Bruce Reichstein

In the early days of the month of September, the FHA and HUD have made a number of announcements regarding disaster relief for portions of the country that have experienced fires, floods, and hurricanes. The agencies have, from the start of September to September 10, 2021, issued no fewer than seven announcements related to disaster relief. The first of those, dated September 1, 2021, includes the following related to disaster relief measures for those who are in presidentially declared federal disaster areas: Foreclosure relief – There is an automatic 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages beginning on the date of the major disaster declaration; Call the FHA Resource Center at 1-800-304-9320 for assistance FHA Rehab Loans — FHA Section 203(h) Rehabilitation Loans for disaster victims | more...

September 2, 2021

Advice For Homeowners Affected By Natural Disasters in 2021

By Joe Wallace

American homeowners have been hard hit by natural disasters in 2021; everything from forest fires to hurricanes and tropical storms have beset homeowners on both coasts and in many places in-between. Add to that the complications of the COVID-19 pandemic and you get a lot of financial hardship for those who have had to evacuate, and for those who have experienced lost or damaged homes and property. The FHA and HUD have specific disaster-relief policies for those affected by natural disasters; if you have been affected by a storm, fire, or any other type of natural disaster it’s vital to contact your participating lender immediately to discuss your home loan options during the recovery phase. FHA loan rules for those affected by natural disasters may include limited foreclosure moratorium procedures | more...

February 25, 2021

HUD Announces Further Modifications Of Home Loan Policy During COVID-19

By Joe Wallace

The pandemic has forced many business owners, consumers, house hunters, and home sellers to rethink their approach to the task at hand. The FHA and HUD have modified many FHA loan rules to accommodate the need to socially distance and implement other coronavirus mitigation procedures and prevent the spread of the virus. And in 2021, those modifications must continue. On Tuesday, February 23, 2021, the HUD official site announced extensions of already-modified Single Family mortgage loan policies–modifications that would allow the FHA to help “maintain new mortgage originations for homebuyers and allow 203(k) rehabilitation projects to continue during the COVID-19 pandemic”. Extending these policies insures continued flexibility in certain guidelines for single family home loans. Why is it needed? To ensure home loans are available via the FHA program for | more...

February 22, 2021

Texas Home Owners Get Federal Disaster Relief

By Bruce Reichstein

Millions of homeowners in Texas were affected by severe winter weather and unprecedented freezing conditions there; On Monday, February 22, 2021 Texas residents woke up having had their state declared a federal disaster area. Those with FHA mortgages who own homes in the state of Texas are getting help from the federal government in the wake of deadly winter storms in the area affecting some half a million homeowners in the Lone Star State. President Biden has declared the state of Texas as a federal disaster area, and that means federal assistance for state and local recovery efforts. It also means Texas homeowners have access to disaster relief to help repair or replace homes damaged by the winter weather there. Do you have an FHA home loan? Contact your loan | more...

January 25, 2021

HUD Announces Extension Of FHA Loan Foreclosure / Eviction Moratorium

By Bruce Reichstein

A press release at the official site for the Department of Housing and Urban Development announces that the Biden Administration has “requested the U.S. Department of Housing and Urban Development and other Federal Agencies” extend the current COVID-related foreclosure and eviction moratorium for single family mortgages insured by the Federal Housing Administration. This request also affects loans guaranteed by the Office of Native American Programs’ Section 184 and 184A loan guarantee programs. At press time, and according to the press release, the moratorium is extended through March 31, 2021. The press release on the HUD official site states that this extension is, “one of the first Administration actions” that addresses the need for “meaningful support” to homeowners struggling with financial difficulty during the pandemic. “As President Biden promised, his new | more...

December 22, 2020

FHA Mortgage Relief Extended Into 2021

By Joe Wallace

Millions of homeowners with FHA mortgages in need of mortgage relief during the coronavirus pandemic are getting an extension on their options to avoid foreclosure. That is thanks to a recent move by the Department of Housing and Urban Development; the agency has announced an extension to coronavirus relief measures intended to help borrowers financially affected by COVID-19. FHA and HUD official sites announced this week that they have approved a two-month extension to the COVID-19 related foreclosure and eviction moratorium. The new expiration date for the moratorium is listed as February 28, 2021. There is now more time for FHA borrowers to request what the FHA calls an “initial COVID-19 forbearance” which must be obtained from the borrower’s mortgage servicer. This forbearance is meant to “defer or reduce” FHA | more...