HUD announces disaster assistance in the wake of Hurricane IkeMortgagePress.comHUD, FHA, insurance, rehabilitation
U.S. Housing and Urban Development Secretary Steve Preston today
announced HUD will speed federal disaster assistance to dozens of
counties and parishes in Texas and Louisiana following Hurricane
Ike. This assistance will support homeowners and low-income renters
and includes foreclosure relief for families whose homes are
insured through HUD's Federal Housing Administration (FHA).
"Hurricane Ike cut a wide path across Louisiana and Texas, and
possibly uprooted many families," said Preston. "FHA's foreclosure
moratorium will give these families the breathing room they need to
put their lives back together without worrying about the prospect
of losing their homes."
A presidential disaster declaration triggers a variety of
federal assistance including grants for temporary housing and home
repairs, low-cost loans to cover uninsured property losses, and
other programs to help individuals and business owners recover from
the effects of the disaster.
HUD is granting immediate foreclosure relief—In certain
storm and flooded ravaged counties, HUD granted a 90-day moratorium
on foreclosures of FHA-insured home mortgages and strongly
recommended that loan servicers take such actions as special
forbearance, loan modification, refinancing, and waiver of late
charges. Foreclosure relief is available for FHA-insured families
living in the following counties:
TEXAS
Angelina, Austin, Brazoria, Chambers, Cherokee, Fort Bend,
Galveston, Grimes, Hardin, Harris, Houston, Jasper, Jefferson,
Liberty, Madison, Matagorda, Montgomery, Nacogdoches, Newton,
Orange, Polk, Sabine, San Augustine, San Jacinto, Trinity, Tyler,
Walker, Waller, and Washington Counties.
LOUISIANA
Acadia, Beauregard, Calcasieu, Cameron, Iberia, Jefferson Davis,
Sabine, St. Mary, Vermilion, and Vernon Parishes.
In addition, HUD is:
Offering states and local communities the ability to
re-allocate existing federal resources toward disaster
relief
HUD's Community Development Block Grant (CDBG) and HOME programs
give the state the flexibility to redirect millions of dollars to
address critical needs, including housing and services for tornado
victims. HUD is currently contacting State and local officials to
explore their needs for streamlining the Department's CDBG and HOME
programs in order to expedite the repair and replacement of damaged
housing;
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 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; and
Offering Section 108 loan guarantee
assistance
HUD will offer state and local governments federally guaranteed
loans for housing rehabilitation, economic development and repair
of public infrastructure.
For more information about these and other HUD programs
designed to assist disaster victims, visit
www.hud.gov/offices/cpd/communitydevelopment/programs
