FHA Mortgages

Federal Catastrophe Aid For FHA Debtors In Montana, New Hampshire

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In the 2021 disaster season there were a large number of federal disaster area declarations; Combined with a global pandemic, it is easy to see that mortgage relief in any form is a badly needed cause.

In October 2021, the FHA and HUD announced foreclosures in the natural disaster-hit areas of New Hampshire and Montana. In New Hampshire, these areas included Cheshire and Sullivan counties, which were damaged by severe storms and floods.

In Montana, areas hit by something known as the Richard Spring Fire received a major disaster declaration for Rosebud County and the Northern Cheyenne Indian Reservation.

By declaring these areas as federal disaster areas, HUD can offer foreclosure assistance in those areas – a 90-day moratorium on foreclosures on FHA-insured mortgages from the date the area is announced that the area is a federal disaster area.

The FHA and HUD are providing 203 (h) rehabilitation loans and refinancing loans to those whose homes were damaged or destroyed by the disaster. These rehab loans can be used in conjunction with other FHA mortgages such as the 203 (k) rehab loan which is designed for non-disaster use.

The FHA and HUD are working with FEMA and local agencies in the affected areas, including, according to the official HUD website, “Public Housing Agencies, Tribe-Elected Housing Companies, and Multi-Family Owners.” The department will also connect FEMA and the state with subject matter experts to provide information on HUD programs and providers for assistance and recreation in the area.

If you live in any of these areas, contact your lender right away to discuss plans to save your home in the event of damage or to replace your home in the event of it being destroyed.

You need to contact your insurance provider and make arrangements, but don’t be rushed to an agreement until you know how much repair and replacement will cost and how much you may need to repair or replace over the settlement money you paid Contributing to the replacement of the house must be entitled to receive.

It’s never safe to assume that your home loan payments are NOT due – keep making mortgage payments or contact your loan officer to discuss a loan modification, deferral, or other measure to protect your investment while you figure out what’s in the aftermath of the damage caused.

Aside from the HUD 90 day moratorium on foreclosure, disaster relief is not automatic and you will need to contact your lender, the FHA, FEMA, and any other agency that offers assistance. You need to initiate the help you are looking for – reach out to these agencies as soon as you are able to get the resources you need to save your home.

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