November 26, 2012
A recent press release issued by the FHA and HUD announces foreclosure protection and other relief for victims of storms in Delaware. According to HUDNo.12-173A, victims of Hurricane Sandy have more options now that three affected counties have been designated federal disaster areas.
According to the press release, “President Obama issued a disaster declaration for Kent, New Castle and Sussex Counties. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in these counties.”
According to U.S. Housing and Urban Development Secretary Shaun Donovan, “Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said Donovan. “Whether it’s foreclosure relief for families with FHA-insured loans or helping these counties to recover, HUD stands ready to help in any way we can.”
Thanks to the disaster declaration, the FHA and HUD are offering the following disaster relief according to the press release:
“Immediate foreclosure relief – HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
Making mortgage insurance available – 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;
Making insurance available for both mortgages and home rehabilitation – 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”.
Homeowners in the affected areas should also register with FEMA (more information is at FEMA.gov) and contact their lenders and insurance agents as soon as possible.
For more information on these or other options, contact the FHA directly at 1-800 CALL FHA.
Do you have questions about the FHA home loan process? Ask us in the comments section.
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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