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July 23, 2014

FHA Orders Foreclosure Halt for Sandy Victims

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FHA Orders Foreclosure Halt for Sandy Victims

The Federal Housing Administration has ordered a 90-day temporary suspension of foreclosures in areas affected by Hurricane Sandy last week, the U.S. Housing and Urban Development announced Monday. 

"I directed all FHA lenders to impose a moratorium on any foreclosures for 90 days in disaster-affected areas," Shaun Donovan, HUD secretary, told reporters. "We don’t want families to be victimized twice -- once by the storm and once by a foreclosure."

Following the storm last week that ravaged the East Coast, mortgage giants Fannie Mae and Freddie Mac also announced mortgage relief for Sandy victims. Sandy victims with Fannie- or Freddie-backed loans might also qualify for temporary forbearance on their mortgages, possibly even up to a year. 

Source: “US Orders 90-day Suspension of FHA Foreclosures in Disaster Areas,” Reuters (Nov. 5, 2012)

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