theMReport.com Your trusted source for mortgage banking news
HUD announced today that it will provide foreclosure relief for the victims of Alabama’s deadly tornados that occurred earlier this week. Homeowners in certain areas affected who are at risk of losing their homes because of the disaster may be able to avoid the initiation of foreclosure for 90 days under this protection, and additional protection is available for low-income renters as well.
This announcement is less than a week after HUD announced its approval of the U.S. Virgin Island’s latest disaster recovery action plan, which will invest an additional $779 million to help the state continues to rebuild from Hurricanes Maria and Irma.
A few of the key things HUD offers those covered are immediate foreclosure relief or an automatic 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages commenced for the counties covered under the Presidential declaration. In addition, it makes mortgage insurance available to disaster victims whose homes were destroyed or damaged beyond repair. Also, HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance a house along with its repair through a single mortgage. Homeowners who have damaged houses can also finance the rehabilitation of their existing single-family home.
In an effort to get help to those who need it, the department will share this information with the Federal Emergency Management Agency (FEMA) and the State on housing providers that may have available units in the impacted counties. This includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.
For the full report read here.
