September 14, 2012 (Shirley Allen)
The Department of Housing and Urban Development (HUD) has announced they will provide disaster relief, including mortgage assistance, to homeowners and low-income renters in Wisconsin, Maryland and Montana who were forced from their homes due to recent natural disasters.
The Obama Administration has declared that certain families in the Wisconsin Counties of Ashland, Bayfield, and Douglas Counties as well as the Red Cliff Band of Lake Superior Chippewa are eligible for disaster assistance including mortgage relief due to severe storms and flooding in June.
In Maryland, the Counties of Calvert, Charles, Kent, Montgomery, and St. Mary’s and the Independent City of Baltimore are eligible for disaster assistance due to severe storms and straight-line winds in June and July.
Recent wildfires in the state of Montana allows HUD to offer foreclosure relief and other assistance to certain families living in the Counties of Powder and Rosebud along with the Northern Cheyenne Indian Reservation.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said HUD Secretary Shaun Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”
Available assistance includes:
– Granting immediate foreclosure relief: HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
– Offering the State and other entitlement communities the ability to re-allocate existing federal resources toward disaster relief: HUD’s Community Development Block Grant (CDBG) and HOME programs give the States and communities the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department’s CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
– Making mortgage insurance available: HUD’s Section 203(h) program provides FHA insurance 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;
– Making insurance available for both mortgages and home rehabilitation: 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; and
– Offering Section 108 loan guarantee assistance: HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
More information about disaster assistance is available on HUD’s website.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance