PORTSMOUTH, Va. (WAVY) — Many people living in Western North Carolina who have an FHA-insured Single Family Title II or Home Equity Conversion Mortgage do not have to worry about foreclosure until April 2025.
The U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) announced its foreclosure moratoriums are being extended. The moratoriums are for people with specific loan types who live in Presidentially Declared Major Disaster Areas (PDMDAs) declared as a result of Hurricanes Helene and Milton. They were originally issued for 90 days.
The extension aims to people borrowers affected by the hurricanes with additional time to access federal, state or local housing resources. Those impacted can also consult with a HUD-approved housing counselor and rebuild their homes.
“When disaster strikes, we know that families and communities need not only resources, but time to recover,” said HUD Agency Head Adrianne Todman, in a statement. “Today, by extending our foreclosure moratorium, we continue the Biden-Harris Administration’s efforts to help those affected by the catastrophic Hurricanes Helene and Milton to repair and rebuild their homes, communities, and lives.”
When the hurricanes occurred, FHE automatically implemented a 90-day stop on foreclosures that required mortgage services to stop all foreclosure actions in the Presidentially Declared Major Disaster Area. The moratorium has not only been extended until April 11, 2025, but FHA is also extending the deadline dates for servicers to perform certain legal actions related to foreclosure for an additional 180 days after that April date.
“Because the consecutive Hurricanes Helene and Milton caused a great deal of damage and disruption, FHA believes it is appropriate to extend our foreclosure moratoriums by 120 days,” Federal Housing Commissioner Julia Gordon said, in a statement. “This extension will provide more time for homeowners to review a range of options with their mortgage servicer if they are unable to resume regular mortgage payments due to the impact of the disaster.”
People with FHA-insured mortgages who live in a Presidentially Declared Major Disaster Area are advised to contact their mortgage or loan servicer immediately for assistance. If they cannot resume their regular payments yet, there are many options available to them.
People impacted by the storm can contact a HUD-approved housing counseling agency to speak with a counselor to determine assistance needs and identify available resources. HUD-approved housing counseling agencies can be found on HUD’s website or by calling 800-569-4287. Borrowers do not have to have an FHA-insured mortgage to meet with a HUD-approved housing counseling agency and there is never a fee for foreclosure prevention counseling.
People whose homes were destroyed or damaged to the point the house needs reconstruction or complete replacement can contact an FHA-approved lender about FHA’s Section 203(h) program. This program provides 100% financing for eligible homeowners to rebuild their homes or purchase new ones. The FHA also has the Section 203(k) loan program which allows people to finance the purchase or refinance of a house, as well as the costs of repair or renovation, through a single mortgage. A FHA-approved lender can be found on HUD’s website.
To learn more about disaster relief options, visit the FHA Disaster Relief site or call the FHA Resource Center at 1-800-304-9320.