August 2, 2011
2011 will likely go down in history as the “year of the storm,” if press releases from the FHA and HUD are any indication. Recent FHA announcements on the latest areas affected by storm and flood damage include press releases detailing FHA assistance for Kentucky, Wyoming, and New Hampshire.
According to the FHA, federal disaster assistance is on the way in these areas to provide support for homeowners–including those with FHA mortgages. HUD Secretary Shaun Donovan is quoted in a recent FHA press release, saying “Families who may have been forced from their homes need to know that help is available to begin the rebuilding process…”
Donovan added, “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”
FHA relief for homeowners in the affected areas includes “immediate foreclosure relief”. FHA/HUD has granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages. The assistance also includes FHA insurance to disaster victims under the HUD Section 203(h) program.
This relief is for “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”.
There is also a program available known as the 203(k), which helps 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”.
As always, the FHA and HUD urge homeowners affected by storms, flooding or other issues in the affected areas to get in touch with lenders, the FHA and FEMA as quickly as possible. In addition to the usual processing times required by these types of relief and the paperwork needed to get them started, additional processing time may be required as there will be large numbers of people all trying to get assistance at the same time.
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.
Browse by Date: