After the devastating storm this week, the last thing that displaced families need is to worry about mortgage debt or foreclosure. President Obama issued a disaster relief declaration for several of the counties in the northeast, part of which includes an effort for HUD to offer foreclosure relief for victims.
Relief For Rebuilding
Victims in the Bronx, Nassau, New York, Richmond, Suffolk and Queens counties of the state of New York will be targeted for foreclosure help in the wake of Hurricane Sandy. The Department of Housing and Urban Development is offering:
- A 90-day moratorium on all foreclosures and forbearance agreements for FHA-insured loan holders.
- FHA mortgage insurance to disaster victims who lost their homes and will be facing rebuilding or relocating costs.
- 100 percent financing and closing cost loans to FHA-approved borrowers to those who lost their homes and will be applying for new mortgages.
More details regarding the foreclosure relief efforts will be released after FEMA has assessed the damage and the available funds have been determined. There is also expected to be additional efforts at the state-level as well.