Your FHA Mortgage And Pure Disasters In 2021
At the beginning of September, the FHA and the HUD made a series of announcements regarding disaster relief to parts of the country affected by fires, floods and cyclones.
The agencies published no fewer than seven reports on disaster relief from the beginning of September to September 10, 2021. The first of these, dated September 1, 2021, includes the following related to disaster relief efforts for those located in federal disaster areas designated by the President:
- Foreclosure – There is an automatic 90-day moratorium on the foreclosure of Federal Housing Administration (FHA) insured mortgages starting on the date the major disaster is declared; Call the FHA Resource Center at 1-800-304-9320 for assistance
- FHA Rehab Loans – FHA Section 203 (h) Rehabilitation Loans for Disaster Victims provides FHA loans to those in federally declared disaster areas whose homes have been “destroyed or damaged to such an extent that reconstruction or replacement is required and who are faced with the daunting task of finding a new one To build or buy at home ”. ”
- Other FHA rehab loan options -The FHA Section 203 (k) Rehabilitation Loan Program, “… enables those who have lost their home to purchase or refinance a home along with its repair through a single mortgage. It also enables homeowners who have damaged houses to finance the renovation of their existing single-family home. “
These options are offered to anyone in a presidential-declared federal disaster area, but no matter where you live, if your home has been damaged by a natural disaster, it is important to contact your loan service provider immediately to see what your options are.
You should do this BEFORE you miss out on payments or default on a mortgage payment.
The sooner you contact the lender, the better off you will be as your options are the most flexible if you make arrangements before you miss a payment.
It is never too early to ask that you take precautions to save your mortgage and prevent your loan from defaulting and foreclosure.
Remember that the moratorium on foreclosure rules are not meant to go indefinitely – a suspension of foreclosure actions on homes purchased with an FHA mortgage in a federal disaster area is a temporary measure designed to give you time to to take the precautions.
Even if your home is destroyed or uninhabitable after the disaster, do not stop payments or make arrangements to adjust your mortgage appropriately to repair the damage.
If you need help with your mortgage loan after a disaster, contact the FHA ASAP and don’t forget to check out the Federal Emergency Management Agency (FEMA) official website as a homeowner may have additional options in the event of a disaster to borrow money to repair or replace the house.