July 31, 2024
In 2024, the United States experienced a series of severe storms, floods, fires, and natural disasters, leading to devastation. But some affected regions, particularly in Maui County, Hawaii where wildfires caused significant damage, were damaged last year but still need federal help.
In response, the Federal Housing Administration (FHA) and the Department of Housing and Urban Development (HUD) extended disaster relief options originally implemented in 2023 for Maui County.
These included the extension of the FHA’s foreclosure moratorium program and other forms of assistance in late summer 2024. And other homeowners across the nation may also be affected by their own federal disaster area.
If you are a homeowner with damage to a home purchased with an FHA mortgage and live in a federal disaster area, the information below can help you recover.
Are you unable to make FHA mortgage payments due to a natural disaster and live in a federally declared disaster area? You may have certain rights to receive support to protect your home.
These may come in the form of foreclosure moratoriums and modified mortgage payments, offered to provide a safety net during these challenging times.
Besides the aid offered to some homeowners through FEMA and the Small Business Administration, the FHA and HUD have options available for those in need.
If you’re struggling to pay your mortgage due to a disaster, here’s what you should do:
- Contact your lender immediately by phone or email.
- Let the lender know what has happened to your house and ask to determine what type of relief you may qualify for.
- If you have an FHA-insured mortgage, you may be eligible for “loss mitigation assistance” to help you maintain your home.
- Your participating FHA lender may consider enrolling you in a forbearance plan if it helps you keep your home.
If a disaster has affected your ability to keep up with your current mortgage payments, ask the lender about your options under an FHA loan foreclosure moratorium. This temporary measure is designed to help you get back on your feet financially.
HUD emphasizes the importance of acting promptly if you qualify for foreclosure relief. You must promptly inform your FHA lender, submit any required supporting documentation, and be prepared to resume mortgage payments at the end of the moratorium period.
If you are still able to make payments on a damaged home, continue doing so. After a natural disaster, it’s important to note that payments are still required unless your lender advises otherwise.
If you have already missed one or more mortgage payments, get in touch with your lender immediately and call HUD toll-free at (800) 569-4287 to connect with a HUD-approved counseling agency.
If you are current on your payments but expect financial difficultu going forward, contact your lender BEFORE missing a house payment.
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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