81.7 F
Charlotte Amalie
Wednesday, April 17, 2024
HomeNewsLocal governmentForeclosure Moratorium Extended for Another 90 days to Help Struggling Families

Foreclosure Moratorium Extended for Another 90 days to Help Struggling Families

United States Department of Housing and Urban Development

The Federal Housing Administration (FHA) is extending its initial 90-day foreclosure moratorium for FHA-insured homeowners impacted by Hurricanes Harvey, Irma and Maria for an additional 90 days due to the extensive damage and continuing needs in hard hit areas.  (Read FHA’s letter to lenders, servicers and counseling agencies).

FHA is extending this foreclosure relief in presidentially declared counties and municipalities where the Federal Emergency Management Agency (FEMA) is operating its Individual Assistance Program (IAP).  Under the expanded moratorium, FHA is instructing lenders and servicers to suspend all foreclosure actions against borrowers until the following dates:

Hurricane Harvey – February 21, 2018

Hurricane Irma – March 9, 2018

Hurricane Maria – March 19, 2018

FHA-insured homeowners may qualify for this relief under the following conditions:

    The household lives within the geographic boundaries of a presidentially declared disaster area;

    A household member of someone who is deceased, missing or injured directly due to the disaster; or

    The borrower’s ability to make mortgage payments is directly or substantially affected by a disaster.

            In addition to the extension of FHA’s initial foreclosure moratorium, the agency is:

    Offering forbearance and loan modification options – Department of Housing and Urban Development (HUD) offers different forbearance and loan modification options for FHA borrowers affected by disasters. Borrowers having trouble making regular payments should contact their loan servicer as soon as possible for more information.

    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.

    Sharing information with FEMA and the state on housing providers that may have available units in the impacted counties includes public housing agencies and multi-family owners. HUD will also connect FEMA and the state to subject matter experts to provide information on HUD programs and providers.

Print Friendly, PDF & Email
Keeping our community informed is our top priority.
If you have a news tip to share, please call or text us at 340-228-8784.

Support local + independent journalism in the U.S. Virgin Islands

Unlike many news organizations, we haven't put up a paywall – we want to keep our journalism as accessible as we can. Our independent journalism costs time, money and hard work to keep you informed, but we do it because we believe that it matters. We know that informed communities are empowered ones. If you appreciate our reporting and want to help make our future more secure, please consider donating.