January 5, 2022
The U.S. Department of Housing and Urban Development has announced federal disaster relief for portions of Arkansas and Colorado affected by natural disasters. In the case of the Arkansas declaration, the following counties are eligible for relief thanks to a Presidential major disaster area declaration:
These counties were hit by severe storms and tornadoes in December 2021.
For the Colorado declaration, Boulder County has been declared a major disaster area due to wildfires that began in late December 2021 and into 2022.
The declaration also means that FEMA funding is provided to the affected areas “on a cost-sharing basis for hazard mitigation measures”.
If you live in any of the affected counties mentioned here, the following disaster relief options are available to you:
Immediate Foreclosure Relief
If you have an FHA mortgage you should know there is a 90-day moratorium “on foreclosures of Federal Housing Administration (FHA)-insured home mortgages commenced on the date of the Presidential major disaster declaration, and foreclosures of mortgages to Native American borrowers guaranteed under the Section 184 Indian Home Loan Guarantee program” according to the HUD official site.
Rehabilitation Loan Options For FHA and Non-FHA Homeowners
The FHA offers certain purchase and refinance loans designed to help rebuild or replace homes damaged in federal disaster areas. These include the FHA 203(k) Rehabilitation Mortgage and the FHA 203(h) Rehabilitation Loan. Both of these are offered as purchase or refi options.
The 203(k) Rehab loan is offered to any financially qualified applicant, but the FHA 203(h) You may be permitted to use BOTH rehabilitation loan programs together when recovering from a disaster.
The FHA and HUD urge homeowners who need this relief to contact their loan servicer as soon as possible. You can also contact the FHA Resource Center (1-800-304-9320).
Do not delay if you need help with your mortgage–contact your lender as soon as possible to make arrangements for your loan if you need a modification, or anticipate having trouble making your mortgage payments in the wake of a natural disaster.