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FHA offers help to Mississippi flood victims

by Peter G. Miller
May 18th, 2011

For millions of people along the Mississippi River, times have gotten tough. The Big Muddy has crested at near-record levels. The damage is substantial, but the U.S. Department of Housing and Urban Development (HUD) is making moves to provide emergency assistance to homeowners who find themselves underwater.

“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said HUD Secretary Shaun Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”

HUD says lenders must suspend initiation of foreclosures and foreclosures in process for 90 days from May 12, which was the date President Barack Obama declared Mississippi River flooding a disaster.

Special protections for those who are current on their mortgage but now face flood-related financial problems are also in the offing. HUD is recommending mortgage lenders consider mortgage modifications, refinancing, waiver of late charges and Special Forbearance Agreements (SFA).

Special forbearance

According to HUD, SFA agreements provide:

  1. Reinstatement of loans at least 3 months but not more than 12 months delinquent
  2. More relief than informal or formal forbearance plans
  3. No change in generic viagra online original loan terms
  4. Failure options
  5. No maximum terms

FHA-approved lenders are eligible for 100 percent financing, including closing costs when they participate in .

Additional help

Disaster financing “enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage, HUD said. FHA-approved lenders are eligible for 100 percent financing, including closing costs.

Are you wondering where to start? If you’re in a Presidentially-declared disaster area you can get help with your FHA home loan. Contact your lender or servicer to start the process or FEMA, which can be reached toll-free at (800) 621-3362 or TTY (800) 462-7585.

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