HUD Archives: News Releases

HUD No. 07-143
Brian Sullivan
(202) 708-0685
For Release
September 26, 2007

Foreclosure protection offered to displaced families in Land of Lincoln

WASHINGTON - U.S. Housing and Urban Development Secretary Alphonso Jackson today announced HUD will speed federal disaster assistance to certain flood-ravaged counties in Illinois and provide support to homeowners and low-income renters forced from their homes following severe storms and flooding.

Yesterday, President Bush declared DeKalb, Grundy, Kane, LaSalle, Lake, and Will Counties a federal disaster area. This presidential declaration triggers a variety of federal assistance including grants for temporary housing and
home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and
business owners recover from the effects of the disaster.

"Those who are forced from their homes due to these severe storms need to know that help is available," said Jackson. "Whether its foreclosure relief for FHA-insured families or helping these counties to rebuild, HUD stands
ready to help in any way we can."

HUD is:

  • Offering the State of Illinois the ability to re-allocate existing federal resources toward disaster
    - HUD's Community Development Block Grant (CDBG) and HOME programs give the State the flexibility
    to redirect millions of dollars to address critical needs, including housing and services for flood victims. HUD
    is currently contacting State and local officials to explore streamlining the Department's CDBG and HOME
    programs in order to expedite the repair and replacement of damaged housing;

  • Granting immediate foreclosure relief - HUD granted a 90-day moratorium on foreclosures and
    forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;

  • Making mortgage insurance available - HUD's Section 203(h) program provides FHA insurance to
    disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another
    home. Borrowers are eligible for 100 percent financing, including closing costs;

  • Making insurance available for both mortgages and home rehabilitation - HUD's Section 203(k) loan
    program enables those who have lost their homes to finance the purchase or refinance of a house along
    with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance
    the rehabilitation of their existing single-family home; and

  • Offering Section 108 loan guarantee assistance - HUD will offer state and local governments federally
    guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.


HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities;
creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the
Internet and


Content Archived: March 15, 2011