Washington – The Federal Housing Administration (FHA) of the U.S. Department of Housing and Urban Development (HUD) announced today that it is extending its moratorium on foreclosures for FHA-insured Single Family Title II forward and Home Equity Conversion Mortgages in Presidentially Declared Major Disaster Areas (PDMDAs) that were declared as a result of the hurricanes Helene and Milton that occurred this past summer. The moratorium will now last until April 11, 2025. This extension gives borrowers impacted by these catastrophic events more time to seek federal, state, or local housing assistance, speak with a housing counselor approved by the Department of Housing and Urban Development, and/or rebuild their houses.
Adrianne Todman, the head of the HUD Agency, stated, “When disaster strikes, we know that families and communities need not only resources but time to recover.” “By extending our moratorium on foreclosures today, we are continuing the Biden-Harris Administration’s efforts to assist those impacted by the devastating hurricanes Helene and Milton in repairing and rebuilding their homes, communities, and lives.”
The Federal Housing Administration (FHA) put automatic 90-day foreclosure moratoriums into effect after Hurricanes Helene and Milton. These moratoriums compelled mortgage servicers to stop starting or completing any foreclosure actions in PDMDAs on the day each catastrophe was proclaimed. The Federal Housing Administration (FHA) is extending the moratoriums on foreclosures for all Hurricanes Helene and Milton PDMDAs, regardless of when they were declared, until April 11, 2025. The Federal Housing Administration (FHA) is also extending the deadline for servicers to take specific legal actions linked to foreclosure for an additional 180 days after the conclusion of the foreclosure moratoriums.
Federal Housing Commissioner Julia Gordon stated, “Due to the significant destruction and disruption caused by the consecutive hurricanes Helene and Milton, the FHA believes that extending our foreclosure moratoriums by 120 days is appropriate.” Suppose homeowners cannot continue making regular mortgage payments because of the disaster. This extension will provide them extra time to discuss various options with their mortgage servicer.
If you have an FHA-insured mortgage in the Hurricane Helen or Milton PDMDAs, you should contact your mortgage or loan servicer immediately for help. There are several possibilities for people who cannot start making regular mortgage payments again. In addition, borrowers can receive extra help through the following methods:
To learn more about disaster relief alternatives, visit the FHA Disaster Relief website or call the FHA Resource Center at 1-800-304-9320.
Could you contact a housing counseling agency that the HUD approves? These agencies have counselors ready to help those affected by natural disasters figure out what aid they need and what resources are available. Homeowners can search for a HUD-approved housing counseling agency on the internet or by using HUD’s telephone look-up service by calling (800) 569-4287. The telephone look-up tool allows you to access information in over 250 languages. To meet with a housing counseling organization approved by the Department of Housing and Urban Development (HUD), borrowers do not need to have a mortgage guaranteed by the Federal Housing Administration (FHA). Counseling for foreclosure prevention is always free of charge.
If you are a borrower whose house has been destroyed or damaged to the point that it needs to be rebuilt or completely replaced, contact a lender licensed by the Federal Housing Administration (FHA) to learn more about the FHA’s Section 203(h) program. This program offers qualifying homeowners the opportunity to receive 100 percent financing to either rebuild their home or buy a new one.
If you are a borrower looking to buy or fix up a house that has been damaged, please reach out to a lender approved by the Federal Housing Administration (FHA) to learn more about the FHA’s Section 203(k) loan program. This program enables people to obtain a single mortgage to fund the purchase or refinancing of a house and the costs of maintenance or restoration.
