The U.S. Department of Housing and Urban Development has announced federal disaster assistance to three states affected by natural disasters in 2021 and in 2022. Certain counties in Tennessee, Alaska, and Missouri are now eligible for federal disaster relief, FHA foreclosure moratoriums, and more.
Tennessee was affected by severe storms, high winds, and tornadoes from December 10 to December 11, 2021; in January of 2022 the President issued a major disaster declaration for the following Tennessee counties:
- Cheatham
- Davidson
- Dickson
- Gibson
- Henderson
- Henry
- Lake
- Obion
- Stewart
- Sumner
- Weakley
- Wilson
The President also announced a major disaster declaration for portions of Alaska affected by severe storms, high winds, floods, landslides, and mudslides from October 29 to November 1, 2021. In January 2022 the President declared the Kenai Peninsula Borough a major disaster area.
And there is also a federal disaster declaration for portions of Missouri affected by severe storms, high winds, and tornadoes on December 10, 2021. The affected counties are:
- Dunklin
- Iron
- Madison
- Pemiscot
- Reynolds
- Wayne
If you live in any of the affected counties mentioned above, contact your loan officer immediately and ask your lender about the following relief and foreclosure prevention remedies for those with FHA mortgages:
Immediate Foreclosure Relief
In federal disaster areas, there is a 90-day moratorium “on foreclosures of Federal Housing Administration (FHA)-insured home mortgages commenced on the date of the Presidential major disaster declaration, and foreclosures of mortgages to Native American borrowers guaranteed under the Section 184 Indian Home Loan Guarantee program” according to the HUD official site.
The 90-day moratorium does not relieve the borrower from the responsibility to contact the lender and make arrangements to save the mortgage from default and foreclosure. Contact your loan servicer as soon as possible.
Rehabilitation Loan Options For FHA and Non-FHA Homeowners
The FHA offers purchase and refinance loan options designed to help rebuild or replace homes damaged in federal disaster areas. These include the FHA 203(k) Rehabilitation Mortgage and the FHA 203(h) Rehabilitation Loan which can be applied for to buy or refinance.
The 203(k) Rehab loan is offered to any financially qualified applicant regardless of disaster issues, but the FHA 203(h) is specifically for survivors of natural disasters in federally declared areas. You may be allowed to apply for and use BOTH rehabilitation loan programs together when recovering from a disaster.
Call your lender or contact the FHA Resource Center (1-800-304-9320) to learn more.
Do not delay if you need help with your mortgage–contact your lender as soon as possible to make arrangements for your loan if you need a modification. You should also make arrangements if you expect to have difficulty with on-time mortgage payments in the wake of a natural disaster.
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