HUD Extends Foreclosure Moratorium: What This Means for Homeowners

Great news, homeowners! The U.S. Department of Housing and Urban Development (HUD) has just announced an important extension of its foreclosure moratoriums for FHA-insured single family home mortgages and home equity loans in areas declared as major disasters. This vital support will now last until April 11, 2025, giving you precious time to regroup and recover.

This extension is all about helping those impacted by the devastating Hurricanes Helene and Milton. It allows affected borrowers extra time to tap into federal, state, or local housing resources, connect with HUD-approved housing counselors, or begin the journey of rebuilding their homes. You’re not alone in this!

“When disaster strikes, families and communities need more than just resources—they need time to heal and rebuild,” stated HUD Agency Head Adrianne Todman. “By extending our foreclosure moratorium, we are reinforcing the Biden-Harris Administration’s commitment to helping those impacted by these catastrophic hurricanes restore their homes and lives.”

In the aftermath of the hurricanes, the FHA swiftly enacted automatic 90-day foreclosure moratoriums. This meant that mortgage servicers had to pause all foreclosure actions in federally recognized disaster zones from the moment the disaster was declared. Your peace of mind matters, and the FHA is here to support that.

“Given the significant destruction and upheaval caused by Hurricanes Helene and Milton, we believe extending our foreclosure moratoriums by an additional 120 days is the right course of action,” explained Federal Housing Commissioner Julia Gordon. “This extension offers homeowners the crucial time to discuss different options with their mortgage servicers, especially if they’re struggling to make their mortgage payments due to the disaster’s impact.”

In North Carolina, President Biden has officially recognized a major disaster in areas such as Alexander, Alleghany, Ashe, Avery, and many more counties, including the Eastern Band of Cherokee Indians. This is a call to action for those affected!

If you have an FHA-insured mortgage and are located in one of the disaster-impacted areas, don’t hesitate—reach out to your mortgage or loan servicer right away for support. A range of options is available to help you navigate this challenging time. Here are a few ways you can find the assistance you need:

• Check out the FHA Disaster Relief site or give the FHA Resource Center a call at 1-800-304-9320 to discover more about the disaster relief options available to you.
• Get in touch with a HUD-approved housing counseling agency. These dedicated professionals are ready to assist anyone affected by natural disasters, helping you uncover your needs and available resources. Whether or not you have an FHA-insured mortgage, you can find a HUD-approved agency online or by using HUD’s telephone look-up tool at (800) 569-4287. The tool provides information in over 250 languages, and best of all, foreclosure prevention counseling is always free!
• For those whose homes have been severely damaged or destroyed, reach out to an FHA-approved lender about the FHA’s Section 203(h) program. This fantastic program offers 100 percent financing for eligible homeowners to rebuild or buy a new home.
• If you’re looking to purchase or repair a damaged home, consider contacting an FHA-approved lender about the FHA’s Section 203(k) loan program. This innovative program lets you finance the purchase or refinance of a house along with the costs of repairs or renovations, all through one single mortgage.