Biden administration halts FHA foreclosures in Los Angeles County

HUD and other agencies offer relief to California homeowners affected by wildfires

Biden administration halts FHA foreclosures in Los Angeles County

HUD and other agencies offer relief to California homeowners affected by wildfires
California_Fire_palisades

Homes damaged by the wildfires in California will temporarily get a reprieve from any foreclosures on mortgages insured by the Federal Housing Administration, the Biden administration has announced.

The 90-day moratorium on foreclosures went into effect immediately with other federal disaster relief assistance when President Joe Biden made a disaster declaration last week, according to the U.S. Department of Housing and Urban Development.

The action affects FHA loans and also stops foreclosures on mortgages to Native American borrowers guaranteed under the Section 184 Indian Home Loan Guarantee program.

HUD also announced an automatic 90-day stoppage of any foreclosures on FHA’s reverse loan program in affected areas.

In addition, the administration announced 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. See here for more details of available federal assistance programs.

Fannie Mae reminded affected borrowers that mortgage servicers are authorized to offer a forbearance plan for up to 90 days on Fannie Mae-guaranteed loans if the servicer can’t contact the homeowner and believes the home was affected by a disaster.

Homeowners may be able to arrange to reduce or suspend their payments for up to a year by entering a forbearance plan.

“If homeowners have been impacted by the fires, we encourage them to call their mortgage servicer for assistance as soon as possible,” said Cyndi Danko, senior vice president and chief credit officer for single-family at Fannie Mae.

Danko said Fannie Mae continues to monitor the fires and urges people in their path to “focus on their safety.”  


Author

  • Victor Whitman

    Victor Whitman is a contributing writer for Scotsman Guide and a former editor of the publication’s commercial magazine. 

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