When natural disasters such as floods, tornadoes and hurricanes occur, it is devastating for families to lose their homes and belongings. In 2017, many Florida residents and others around the country were displaced and unable to work. This resulted in the inability for some individuals to remain current with their mortgage payments. However, thanks to the Federal Housing Administration, homeowners were extended mortgage relief and were able to avoid home foreclosure.
The agency announced that mortgage relief would go to various states, including Florida, that were affected by several hurricanes and the wildfires out west. The relief offered is that families would be able to stay in their homes. The proposed plan would also protect the Mutual Mortgage Insurance Fund.
The Secretary of the Department of Housing and Urban Development recognizes that homeowners in storm- and fire-ravaged states need a higher level of assistance in their recovery process. The proposal allows residents to begin making mortgage payments again, without being saddled with numerous feeds. The plan is for everyone to keep lower interests and more favorable loan terms in order for them to recover from the disasters they experienced.
Participants in the relief program had to live in one of the defined disaster areas and also had to be delinquent on their mortgages because of the disasters. Another requirement is that the home or property is owner-occupied. Also, consumers had to be current on their previous mortgage payments.
Avoiding home foreclosure is a major goal for many Florida residents in financial distress. An experienced bankruptcy attorney will evaluate the current situation and recommend the best course of action. A respected lawyer can help families develop plans to get their financial situations turned around.
Source: housingwire.com, “FHA expands on foreclosure relief for 2017 disaster victims“, Kelsey Ramirez, Feb. 22, 2018