HUD AND THE STATE OF TEXAS LAUNCH PUBLIC AWARENESS CAMPAIGN TO HELP STRUGGLING HOMEOWNERS

WASHINGTON – The U.S. Department of Housing and
Urban Development (HUD) and the Texas General Land
Office (GLO) today launched a public awareness campaign
to inform owners of homes damaged by Hurricane
Harvey that help is available to avoid foreclosure and to
finance repairs.
“After a major disaster like Hurricane Harvey, struggling
homeowners need to know that we will do everything
we can to facilitate their recovery,” said HUD
Secretary Ben Carson. “Working closely with our Texas
partners, our goal is to give owners of damaged FHAinsured
properties the time needed to focus on repairing
their homes.”
“Hurricane Harvey affected nearly 50,000 square
miles of Texas and damaged or destroyed more than a
million homes,” said Texas Land Commissioner George
P. Bush. “While we rebuild, many Texas homeowners
are facing a second struggle of returning to work and
making mortgage payments. To help these Texans,
the GLO is proud to team with our disaster recovery
partners at HUD to help those who need help avoiding
foreclosure or assistance in financing repairs to damaged
homes. Texans who are having trouble making
payments should contact their service providers to learn
about available resources or call the FHA Resource
Center at (800) CALL-FHA. Reach out now to get help.”
Over one-quarter of home loans in Texas are insured
by the Federal Housing Administration (FHA), an agency
within HUD, which offers a range of payment and
other relief options for borrowers living in Presidentially
Declared Major Disaster Areas (PDMDAs). Borrowers
who are having trouble making mortgage payments
should contact their servicers to discuss available
resources. In addition, HUD-approved housing counselors
can assist in connecting impacted homeowners
with the right options for relief. HUD also offers help for
borrowers and loan servicers through its FHA Resource
Center, (800) CALL-FHA.
Among the relief provided to homeowners affected
by Hurricane Harvey, FHA has recently announced an
extension to its 90-day foreclosure moratorium until
February 21, 2018 to the FEMA designated Individual
Assistance Areas in the PDMDAs. FHA-insured homeowners
may qualify for this relief if they live or work in
a PDMDA.
FHA also currently offers the following assistance:
• Forbearance and loan modification options
– HUD offers different forbearance and loan modification
options for FHA borrowers affected by disasters.
Borrowers having trouble making regular payments
should contact their loan servicer as soon as possible
for more information.
• Fees and credit reporting – HUD requires lenders
to waive late fees on affected FHA borrowers and
cease any negative credit reporting during the forbearance
period.
• Mortgage insurance for disaster victims
– HUD’s Section 203(h) program provides FHAinsured
mortgage financing to disaster victims who
have lost their homes and are facing the daunting
task of rebuilding or buying another home.
Borrowers from participating FHA-approved lenders
are eligible for 100 percent financing, including
closing costs.
• Purchase and home rehabilitation program
– HUD’s Section 203(k) loan program enables
those who have lost their homes to finance the purchase
or refinance of a house along with its repair
through a single mortgage. It also allows homeowners
who have damaged houses to finance the
rehabilitation of their existing single-family home.
• Collaborations with other federal agencies –
HUD regularly shares information with FEMA and the
State on housing providers that may have available
units in the impacted counties – this includes Public
Housing Agencies and Multi-Family owners. The
Department will also connect FEMA and the State
to subject matter experts to provide information on
HUD programs and providers.