Longer Grace Period For Some Borrowers
U.S. Housing and Urban Development Secretary Shaun Donovan, who serves as President Obama’s Chairman of the Hurricane Sandy Rebuilding Task Force, and Federal Housing Finance Agency Acting Director Edward J. DeMarco announced that the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac will extend expiring protections against foreclosure actions against homeowners whose properties were damaged or destroyed due to Hurricane Sandy.
The additional 90-day foreclosure moratorium applies to homeowners with properties in states where the President issued major disaster declarations following Hurricane Sandy.
The extended moratoriums announced today apply to the initiation of foreclosures and foreclosures already in process.
“It’s all too clear that families need more time to get back on their feet without having a foreclosure or eviction hanging over their heads,” said Donovan. “As we work to rebuild after this historic storm, we’ll do everything we can to ease the crushing burden being faced by those homeowners, many of whom have been forced from their homes.”
“Given the magnitude of this disaster, extending the moratorium on foreclosures and evictions will allow homeowners in the affected areas, and their servicers, the time needed to assess individual circumstances and options,” added DeMarco.
The FHA is extending moratoriums for another 90 days on the initiation of foreclosures and foreclosures already in process. The FHA is also suspending evictions of persons from properties secured by FHA mortgages in these affected counties through April 30.
After consultation with FHFA, Fannie Mae and Freddie Mac will also extend the suspension of forebill closure sales and eviction lockouts for borrowers impacted by Hurricane Sandy. The new 90-day extension applies to homeowners with properties or employment within the Federal Emergency Management Agency (FEMA) declared disaster area eligible for individual assistance.
This follows an earlier 90-day suspension of foreclosure sales and evictions in the impacted areas. In addition to the foreclosure sale and eviction moratorium, homeowners impacted by Hurricane Sandy may be eligible for forbearance, loan modifications or waived late payment charges.