FHA Extends Foreclosure Moratorium in Puerto Rico and Virgin Islands
The Federal Housing Administration (FHA) has issued its third extension of the foreclosure moratorium affecting borrowers with FHA-insured mortgages in the areas of Puerto Rico and the U.S. Virgin Islands that were devastated last summer by Hurricane Maria.
According to the FHA, this new extension will be in place within the Presidentially Declared Major Disaster Areas in the two territories until August 16. Eligible borrowers are those whose ability to make mortgage payments was directly or substantially affected by a disaster, and their mortgages cannot be more than 60-days past due prior to the date of the Presidentially declared major disaster or approved for a forbearance or other loss mitigation option.
This marks the latest effort by the federal government to address the housing damages created by natural disasters in 2017. Last month, the Department of Housing and Urban Development’s (HUD) Community Development Block Grant–Disaster Recovery Program has awarded nearly $28 billion to support long-term disaster recovery in hard-hit areas in nine states, Puerto Rico and the U.S. Virgin Islands. This represented the largest single amount of disaster recovery assistance ever allocated in HUD’s history.