HUD Archives: News Releases

HUD No. 08-073
Brian Sullivan
(202) 708-0685
For Release
May 27, 2008

Foreclosure protection offered to displaced families in Larimer and Weld Counties

WASHINGTON- U.S. Housing and Urban Development Deputy Secretary Roy A. Bernardi today announced HUD will speed federal disaster assistance to the State of Colorado and provide support to homeowners and low-income renters forced from their homes following severe storms and tornadoes. This assistance includes foreclosure relief for families whose homes are insured through HUD's Federal Housing Administration (FHA).

President Bush's disaster 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.

"Whether it's foreclosure relief for FHA-insured families or helping these communities to rebuild, HUD stands ready to help in any way we can." said Bernardi. "The last thing some of these families need to worry about is how to pay a mortgage on a home that's been severely damaged or destroyed. The President's disaster declaration also gives the State of Colorado the tools it needs to begin the rebuilding process."

HUD is:

  • Offering the State of Colorado the ability to re-allocate existing federal resources toward disaster relief - 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 tornado victims. HUD is currently contacting State and local officials to explore their needs for 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 of Federal Housing Administration (FHA)-insured home mortgages in Larimer and Weld County and strongly recommended special forbearance by loan servicers;

  • 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: May 14, 2010