Magazine article Mortgage Banking

FHA, Fannie and Freddie Extend Foreclosure Relief for Sandy Victims

Magazine article Mortgage Banking

FHA, Fannie and Freddie Extend Foreclosure Relief for Sandy Victims

Article excerpt

On Jan. 31, Secretary of Housing and Urban Development (HUD) Shaun Donovan and Acting Director of the Federal Housing Finance Agency (FHFA) Edward DeMarco announced they had extended the foreclosure-relief provisions slated to expire for victims whose properties were damaged or destroyed by Hurricane Sandy.

The government officials announced that the Federal Housing Administration (FHA), as well as Fannie Mae and Freddie Mac, would extend by an additional 90 days the existing foreclosure moratorium in place for nine states plus the District of Columbia. The relief provisions apply in the areas where President Obama issued major disaster declarations following Sandy.

The extended moratoriums apply to the initiation of foreclosures and foreclosures already in process, according to a HUD and FHFA joint press release. The relief is now available through April 30, 2013.

FHA is also suspending evictions of persons from properties secured by FHA mortgages in the affected counties through April 30, 2013, according to the press release. Fannie Mae and Freddie Mac also will automatically suspend evictions for the additional 90-day period.

"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 HUD's Donovan.

DeMarco said, "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. …

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