FHA extends foreclosure moratorium for hurricane victims
(FHA) on Friday announced two new major responses to disaster recovery efforts that continue amid an accelerating trend of extreme weather events. These include extending the foreclosure moratorium for victims of Hurricanes Helene and Milton, as well as a new housing partnership with (FEMA).
The FHA formalized the extension of the foreclosure moratorium through 2024-25 in its Mortgage Letter (ML), requiring lenders to implement the extension, which expires on April 11, 2025, immediately.
“This extension provides additional time for homeowners in Presidentially Declared Major Disaster Areas (PDMDAs) to access federal, state or local housing resources with FHA-insured mortgages; Consult with HUD-approved housing counselors; and/or rebuild their homes,” FHA said in a statement.
The FHA explained that the extensions were warranted because of the extensive devastation caused by the back-to-back hurricanes, including “durable property damage and reduced access to necessary resources for those affected.”
Several locations in Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia are currently designated as PDMDAs.
“When disaster strikes, we know that families and communities need not only resources, but time to rebuild,” said (HUD) Acting Secretary. “Today, by extending our foreclosure moratorium, we continue our efforts to help those affected by the catastrophic hurricanes Helene and Milton to repair and rebuild their homes, communities and lives.”
While an automatic 90-day foreclosure moratorium was in place immediately after the storms, the extent of the damage and impact on residents warrants an extension, the agency explained. The FHA also extends an additional 180 days after the expiration of foreclosure moratoriums “to pursue certain legal actions related to foreclosures.”
“Because of the extensive damage and disruption caused by consecutive hurricanes Helene and Milton, FHA believes it is appropriate to extend our foreclosure moratoriums by 120 days,” said the FHA commissioner. “This extension will provide more time for homeowners to review a range of options with their mortgage servicer if they are unable to continue making regular mortgage payments due to the impact of the disaster.”
In addition, HUD announced a new partnership with FEMA designed to expand post-disaster housing efforts by creating a “Pre-Disaster Housing Initiative.” It targets specific states with preventive assistance in the event of a disaster.
“During the eight-month period, both agencies will provide technical assistance and guidance to officials and emergency managers in Kentucky, Michigan and Missouri to maximize housing-focused planning that can help reduce potential housing shortages in communities when a disaster strikes,” FHA said. in his announcement.
The agency explained that these particular states were chosen “because they provide a broad perspective on the challenges of planning and implementing post-disaster housing missions.” These attributes include geographic diversity, a higher frequency of disaster declarations, and the types of disasters they and other surrounding states may experience.
Each state will have a chance to define its own priorities and expected outcomes. According to the FHA, they are expected to engage with their local communities in the process of “developing a disaster response strategy that can be implemented as needed.”
Todman added in a statement that agencies will not simply wait for another disaster to occur before taking action, because preventive measures can make a significant difference in mitigating the problems caused by disasters.
“(W)hen disasters strike, we have an obligation to help communities rebuild,” he said. “That's why I'm calling Congress Acting quickly to approve the president's funding for HUD's disaster recovery, so we can help Americans rebuild their homes now.
An interagency partnership can also help strengthen the relationship between HUD and FEMA, according to Colt Hagmaier, FEMA's recovery assistant.
“This partnership remains a priority for both FEMA and HUD, and we are excited to see the exponential impacts of this initiative across the country,” he said.
