Was your home
or your ability to make your mortgage payments harmed by an event that the President
declared a disaster? You may qualify for relief to help you keep your home. Much
of the mortgage industry and The United States Department of Housing and Urban
Development is committed to assisting borrowers whose lives and livelihoods are
thrown into turmoil by a disaster.
you can't pay your mortgage because of what happened, your lender may be able
to help you. If you are at risk of losing your home because of the disaster, your
lender may stop or delay initiation of foreclosure for 90 days.
may also waive late fees for borrowers who may become delinquent on their loans.
Just follow the four steps below to see if help may be available to you. You are
strongly encouraged to contact your lender for further information, and to see
if you are eligible for relief.
One - Answer Four Basic Questions
If you answered
"yes" to all of these questions, and you have a conventional or VA mortgage,
contact your lender. If you have an FHA-insured mortgage, please continue reading.
my expenses rise or income fall?
these changes in my finances caused directly or substantially by the disaster?
I missed any mortgage payments?
I without other resources, such as insurance settlements, to catch up?
Two - See If and How You Can Participate in FHA Disaster Relief
next step is to determine if you are one of the affected borrowers as described
below. You must be in one of three basic groups in order to qualify for a moratorium
- You or your family live within the geographic boundaries of a Presidentially
declared disaster area, you are automatically covered by a 90-day foreclosure
- You are a household member of someone who is deceased, missing
or injured directly due to the disaster, you qualify for a moratorium.
financial ability to pay your mortgage debt was directly or substantially affected
by a disaster, you qualify for a moratorium.
Your FHA Loan Was Current before the Disaster but Now You Can't Make Your Next
special program is designed to help borrowers who are at risk of imminent foreclosure,
so a moratorium won't apply to your situation. However, if your inability to pay
your loan resulted from the disaster, your lender may waive any late fees normally
charged and let you know about other options. Also, if you foresee ongoing problems
in making your mortgage payments resulting from changes in your financial status,
you should contact your lender immediately.
Can This FHA Disaster Relief Help Me?
has instructed FHA lenders to use reasonable judgment in determining who is an
"affected borrower." Lenders are required to reevaluate each delinquent
loan until reinstatement or foreclosure and to identify the cause of default.
Contact your lender to let them know about your situation. Some of the actions
that your lender may take are:
- During the term of a moratorium, your loan may not be referred to foreclosure
if you were affected by a disaster.
- Your lender will evaluate you for
any available loss mitigation assistance to help you retain your home.
lender may enter into a special forbearance plan, or execute a loan modification
or a partial claim, if these actions are likely to help reinstate your loan.
saving your home is not feasible, lenders have some flexibility in using the preforeclosure
sales program or may offer to accept a deed-in-lieu of foreclosure.
Three - Take Action to Qualify for Foreclosure Relief
foreclosure moratorium applies only to borrowers who are delinquent on their FHA
loan. If you are current on your loan payments, then you should continue to make
them. When contacting your lender for further instructions, please be prepared
to provide them information about disability or other insurance that may be available
to assist you in making your payments.
FHA lenders will automatically stop all foreclosure actions against families with
delinquent loans on homes within the boundaries of a Presidentially declared disaster
you were physically or financially impacted by the disasters and are in default
or foreclosure, contact your lender immediately to request assistance.
Borrowers who were injured or whose income relied on individuals who were injured
or died in the disaster will be asked for documentation such as medical records
or death certificates, if available. Your lender will ask you for financial information
to help evaluate what assistance can be provided to you to reinstate your loan.
Already in Foreclosure
is very important that you notify your lender to be sure that they realize you
are an affected borrower. Your lender may request supporting documentation and
use it to determine if you meet the relief criteria. Once identified as an affected
borrower, foreclosure action may be stopped for the duration of the moratorium
Four -If Your Lender Is Unable to Assist You
HUD is confident that your mortgage lender will make every attempt
possible to assist you. If you are not satisfied after discussing
possible relief actions with your lender, please call a HUD-approved
counseling agency toll free at (800) 569-4287 or contact HUD's National