Foreclosure Moratorium for Hurricane Victims Extended

Posted in Foreclosure, August 31st, 2006 |

FHA-insured homeowners of the Gulf Coast area who have been affected by Hurricanes Katrina, Rita, and Wilma received further relief last week when HUD Secretary Alphonso Jackson directed all FHA-approved lenders to extend HUD’s moratorium on foreclosures of FHA-insured mortgages by 120 days.

The action extends a moratorium that had been in effect through February 28. The moratorium will remain in effect on June 30. 2006. It is the third moratorium given to hurricane victims on foreclosures of FHA-insured mortgages.

In order to be eligible for the full 120-day moratorium, borrowers must make a written statement of commitment to work with their lender to resolve their mortgage back payments. This commitment must be received by the lender on or before March 31, 2006. Borrowers are encouraged to contact their lender as soon as possible to learn about available options.

HUD feels that by preventing the possibility of foreclosure for another four months, it will ease the pressure on FHA-insured borrowers trying to put their entire lives back together after the storm devastated the region.
-John Grady