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Mortgage help for victims of Hurricane Matthew

WASHINGTON – Oct. 12, 2016 – U.S. Housing and Urban Development (HUD) Secretary Julián Castro announced that HUD will speed federal disaster assistance to Florida, North Carolina and Georgia to support homeowners and low-income renters forced from their homes due to Hurricane Matthew. In addition, Fannie Mae and Freddie Mac announced assistance for homeowners who may have mortgage problems as a result of the hurricane.
A disaster declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county, and President Obama issued a declaration for the following counties:
 
Florida: Brevard, Duval, Flagler, Indian River, Nassau, St. Johns, St. Lucie and Volusia
North Carolina: Beaufort, Bladen, Columbus, Cumberland, Edgecombe, Hoke, Lenoir, Nash, Pitt, and Robeson
Georgia: Bryan, Camden, Chatham, Glynn, Liberty, and McIntosh
“Today, our collective thoughts and prayers are with those who are now facing the painful process of recovering from this storm,” said Castro. “As our sister agencies assess the damage and respond to the immediate needs of our citizens, HUD will offer any assistance possible and stands ready to support the longer term housing recovery efforts.”
HUD efforts
Help states and local governments re-allocate existing federal resources toward disaster relief: HUD’s Community Development Block Grant (CDBG) and HOME programs give the states and communities flexibility to redirect millions of dollars in annual formula funding to address critical needs, including housing and services for disaster victims. 
Grant immediate foreclosure relief: HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages. 
Make mortgage insurance available: HUD’s Section 203(h) Program allows the Federal Housing Administration (FHA) to insure mortgages made by qualified lenders to victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home. Individuals are eligible for this program if their homes are located in an area designated by the president and if their homes were destroyed or damaged to an extent that reconstruction or replacement is necessary. 
Make insurance available for both mortgages and home rehabilitation: HUD’s Section 203(k) loan program enables owners who have lost homes to roll the cost of repairs into a single mortgage. 
Offer 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.
 
Fannie Mae and Freddie Mac programs
Mortgage giants Freddie Mac and Fannie Mae are offering several mortgage options, including forbearance for up to 12 months or mortgage modifications.
Freddie Mac’s disaster relief options are to borrowers whose homes are located in declared Major Disaster Areas where federal individual assistance programs are being made available to help affected households.
“We strongly encourage the many American families whose homes or businesses are being impacted by Hurricane Matthew to call their mortgage servicer once the Federal Emergency Management Agency’s declaration is announced,” says Yvette Gilmore, Freddie Mac’s vice president of single-family servicer performance management. “Relief – including forbearance on mortgage payments for up to one year – may be available if their mortgage is owned or guaranteed by Freddie Mac.”
Freddie Mac’s mortgage relief options include:
Suspending foreclosures by providing forbearance for up to 12 months
Waiving assessments of penalties or late fees against borrowers with damaged homes from the hurricane
Not reporting forbearance or delinquencies prompted by the hurricane to the credit bureaus
Similarly, Fannie Mae is offering forbearance to any borrowers affected by the hurricane and delaying impacted foreclosures sales. Affected homeowners may temporarily suspend or reduce their mortgage payments for up to 90 days under Fannie Mae’s guidelines. Lenders may also grant forbearance for up to six months thereafter and extend that by an additional six months, as needed.
FEMA information on Florida’s impact from Hurricane Matthew is posted online.
© 2016 Florida Realtors®
 


Source: Florida Realtors Feed

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