HUD No. 05-161
November 23, 2005
HUD EXTENDS FORECLOSURE MORATORIUM FOR FHA-INSURED HOMEOWNERS IN HURRICANE AFFECTED AREAS
Additional relief granted to victims of Katrina and Rita
WASHINGTON - Housing and Urban Development Secretary Alphonso Jackson today announced that he is instructing all FHA-approved lenders to provide additional foreclosure relief to FHA-insured families who live or work in those areas hardest hit by Hurricane Katrina and Rita . The relief affects all pending foreclosures of FHA-insured properties in the Presidentially declared disaster areas designated by the Federal Emergency Management Agency (FEMA) as eligible for individual assistance. Additionally, it prohibits lenders from initiating new foreclosures. Jackson is also again encouraging lenders to undertake actions such as assisting borrowers with hazard and flood insurance filings, waiver of late charges, and mortgage modification.
"It is important that families left devastated in the wake of these hurricanes are able to focus on rebuilding their lives, not worrying about losing their homes, said Jackson. "We are committed to helping families rebuild their communities. This moratorium gives families with FHA-insured mortgages time to get back on their feet and peace of mind in knowing there's a helping hand ready to work with them through the recovery."
The extended moratorium will be in effect until February 28, 2006. A current foreclosure moratorium impacting FHA mortgages in Presidentially declared disaster areas hit by Hurricane Wilma will remain effective until January 22, 2006 unless otherwise extended by the Secretary.
For additional information, FHA-insured homeowners can contact HUD's National Servicing Center at: 1-888-297-8685.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet.