Foreclosure Relief Extended to Sandy Victims

February 1, 2013

Home owners whose properties were damaged or destroyed due to Hurricane Sandy will receive additional protection against foreclosure. 

The Federal Housing Finance Agency (FHFA) and the U.S. Department of Housing and Urban Development announced an additional 90-day moratorium for home owners in the disaster-designated areas. It applies to the initiation of foreclosures as well as foreclosures already in progress, and applies to borrowers with FHA, Fannie Mae, and Freddie Mac-backed loans.

“Given the magnitude of this disaster, extending the moratorium on foreclosures and evictions will allow home owners in the affected areas, and their servicers, the time needed to assess individual circumstances and options,” says Edward J. DeMarco, FHFA’s acting director. 

The agency also announced it will suspend evictions from properties secured by FHA mortgages in affected areas until April 30, 2013. 

Fannie Mae, Freddie Mac, and FHFA also said they will extend the suspension of foreclosure sales and eviction lockouts for Hurricane Sandy victims.

Sandy victims may also be eligible for forbearance, loan modifications, or waived late-payment charges. 

“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,” says Shaun Donovan, HUD Secretary. “As we work to rebuild after this historic storm, we’ll do everything we can to ease the crushing burden being faced by those home owners, many of whom have been forced from their homes.”

Source: U.S. Department of Housing and Urban Development

Read More

REALTORS® on the East Coast Help Clients Pick Up the Pieces Following Hurricane Sandy