January 11, 2022
The U.S. Department of Housing and Urban Development has announced federal disaster relief for certain counties in Washington State affected by natural disasters late in 2021. The following counties have been declared federal disaster areas:
- Clallam
- Skagit
- Whatcom
That is in addition to federal disaster areas for the Lummi Nation, Nooksack Indian Tribe, and Quileute Tribe in Washington. The relief is intended to “supplement state, tribal, and local recovery efforts in the areas affected by flooding and mudslides” from November 13 to November 15 in 2021.
If you live in any of the affected counties or tribal areas mentioned above, contact your loan officer immediately and ask your lender about the following relief and foreclosure prevention remedies for those with FHA mortgages:
Immediate Foreclosure Relief
In federal disaster areas, 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.
The 90-day moratorium does not relieve the borrower from the responsibility to contact the lender and make arrangements to save the mortgage from default and foreclosure. Contact your loan servicer as soon as possible.
Rehabilitation Loan Options For FHA and Non-FHA Homeowners
The FHA offers purchase and refinance loan options 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 which can be applied for to buy or refinance.
The 203(k) Rehab loan is offered to any financially qualified applicant regardless of disaster issues, but the FHA 203(h) is specifically for survivors of natural disasters in federally declared areas. You may be allowed to apply for and use BOTH rehabilitation loan programs together when recovering from a disaster.
Call your lender or contact the FHA Resource Center (1-800-304-9320) to learn more.
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. You should also make arrangements if you expect to have difficulty with on-time mortgage payments in the wake of a natural disaster.
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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