Foreclosure protection offered to displaced families in 11 countiesWASHINGTON – U.S. Housing and Urban Development Secretary Steve Preston today announced HUD will speed federal disaster assistance to 11 storm-ravaged counties in Michigan and provide support to homeowners and low-income renters forced from their homes following severe storms, tornadoes, and flooding. This assistance includes foreclosure relief for families whose homes are insured through the Federal Housing Administration (FHA) living in Allegan, Barry, Eaton, Ingham, Lake, Manistee, Mason, Missaukee, Osceola, Ottawa, and Wexford Counties (more counties may be added in the coming days/weeks).
Yesterday, President Bush declared these counties eligible for certain disaster assistance. A presidential disaster declaration triggers a variety of federal assistance including grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster.
“These storms, and the flooding they produced, are tearing people’s lives apart and we must offer substantive relief to these families,” said Preston. “To speed this recovery, we’re calling for a ‘foreclosure time-out’ to offer FHA-insured families a little breathing room as they confront the rebuilding process.”
HUD is granting immediate foreclosure relief – In certain storm and flooded ravaged counties, HUD granted a 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages and strongly recommended that loan servicers take such actions as special forbearance, loan modification, refinancing, and waiver of late charges.
HUD is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.