A federal disaster declaration has put a 90-day hold on certain foreclosures in
Borrowers with these loans, which have less-stringent lending standards and lower down payments, pay for the mortgage insurance, which protects lenders from a loss if the borrower defaults on the loan.
Across the four cities are 37,567 FHA-endorsed mortgages, according to the federal housing agency, with over one-third of them issued to
Housing officials said FHA lenders will automatically stop all foreclosure actions against families with delinquent home loans within those cities. The lenders can do a loan modification or partial claim if the actions will help residents keep their homes.
The disaster declaration also could help residents who were current on an FHA loan before Hurricane Matthew but fear they might miss a future payment. If a homeowner's financial ability was substantially affected by the storm, a lender may waive late fees that would normally be charged.
Federal housing officials urge these homeowners to notify their lenders to ensure the loan servicers are aware they are affected borrowers.
The foreclosure moratorium doesn't apply to any other mortgages unless the lenders or insurers so state, Wolfe said.
State officials acknowledge other areas outside of those cities were affected and have requested more direct assistance for citizens and businesses. They have asked for expansion of aid for
Aside from the foreclosure moratorium, the federal housing agency also has a program to provide FHA insurance to Hurricane Matthew victims who have lost their homes and either have to rebuild or buy a home. Borrowers from FHA lenders are eligible for complete financing, including closing costs.
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