HUD Announces Disaster Relief for Three States
There have been a high number of storms, tornadoes, floods, and other issues that have resulted in multiple declarations across the country--the latest of these are for counties in Tennessee, Alaska, and Missouri that are now eligible for federal disaster relief, FHA foreclosure moratoriums, and more.
Tennessee was affected by severe storms, high winds, and tornadoes in 2021. In January of 2022, the President issued a major disaster declaration for Tennessee counties including:
FHA Borrowers Get Immediate Foreclosure Relief
In federal disaster areas, there is a 90-day moratorium “on foreclosures of Federal Housing Administration (FHA)-insured home mortgages commenced on the date of the Presidential major disaster declaration, and foreclosures of mortgages to Native American borrowers guaranteed under the Section 184 Indian Home Loan Guarantee program” according to the HUD official site.
The 90-day moratorium does not relieve the borrower from the responsibility to contact the lender and make arrangements to save the mortgage from default and foreclosure. Contact your loan servicer as soon as possible.
Rehabilitation Loan Options
For FHA and non-FHA borrowers alike, FHA loan options to recover from these disasters include purchase and refinance loan options designed to help rebuild or replace homes. These include the FHA 203(k) Rehabilitation Mortgage and the FHA 203(h) Rehabilitation Loan which can be applied for to buy or refinance.
The 203(k) Rehab loan is available at any time to financially qualified applicants regardless of disaster issues, but the FHA 203(h) is designed to serve survivors of natural disasters in federally declared areas. You may be allowed to apply for and use BOTH rehabilitation loan programs together when recovering from a disaster.
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