FHA Extends Foreclosure Pause: Hope for Hurricane-Hit Communities!
Hurricane Milton left a trail of destruction across Manasota Key, Florida, on October 11, and the aftermath is still being felt. In a decisive move, the Biden administration has extended a foreclosure moratorium for homeowners affected by Hurricanes Milton and Helene, offering crucial relief until April 11.
Dec. 6 — The Biden administration is stepping up for those impacted by the recent hurricanes, extending a lifeline to homeowners with federally insured mortgages in the hardest-hit regions.
The Federal Housing Administration (FHA) has officially announced that it will prolong the moratorium that prevents lenders from initiating foreclosures on FHA-insured mortgages in these devastated areas.
This moratorium primarily impacts homeowners utilizing Single Family Title II forward and Home Equity Conversion Mortgages in federally recognized disaster zones. It builds on the automatic 90-day moratorium established three months ago in response to the storms, providing victims with the essential time they need to explore housing resources, consult with housing counselors, and begin the arduous process of rebuilding.
“Following the extensive damage and disruption caused by Hurricanes Helene and Milton, extending our foreclosure moratoriums by 120 days is a necessary step,” stated Federal Housing Commissioner Julia Gordon. “This extension will empower homeowners to assess their options with mortgage servicers if they find themselves unable to resume regular mortgage payments due to the disaster’s impact.”
President Joe Biden declared disasters in several states, including Georgia, Florida (for both Helene and Milton), North Carolina, South Carolina, Tennessee, and Virginia, facilitating the release of much-needed assistance.
“In times of disaster, families and communities need more than just resources; they require the time to heal and recover,” emphasized HUD Agency Head Adrianne Todman. “With this extended foreclosure moratorium, we reaffirm the Biden-Harris Administration’s commitment to helping those affected by these catastrophic hurricanes rebuild their homes, communities, and lives.”
In a proactive approach to future disasters, HUD and the Federal Emergency Management Agency (FEMA) have recently completed a summit to kick off the Pre-Disaster Housing Initiative. This groundbreaking project aims to help states enhance their post-disaster housing strategies, ensuring communities are better prepared for the challenges that lie ahead. Emergency managers from states like Kentucky, Michigan, and Missouri will collaborate over the next eight months to develop actionable disaster housing strategies.
“This initiative is all about strengthening partnerships between emergency management and housing agencies, both within individual states and across the cohort,” stated Colt Hagmaier, FEMA’s assistant administrator for recovery. “It’s a priority for both FEMA and HUD, and we are excited to see its impactful results unfold nationwide.”
Todman urged Congress to approve Biden’s $12 billion funding request for HUD’s Disaster Recovery Funding, stating, “We need this funding now to help Americans rebuild their homes.” She warned, “Without this crucial support, the homes of thousands of Americans will remain unrepaired, leading to an unprecedented housing shortage in their communities.”
