FHA INFO #16-65: Reminder: Guidance for FHA-Approved Mortgagees When Assisting Borrowers in Presidentially-Declared Major Disaster Areas
October 7, 2016
Due to Hurricane Matthew, today the Federal Housing Administration (FHA) is reminding mortgagees about its guidance for assisting individuals and families with FHA-insured mortgages secured by single family residential properties in Presidentially-Declared Major Disaster Areas (PDMDAs). Mortgagees are reminded that:
- Properties in these areas are subject to a 90-day moratorium on foreclosures following the disaster; and
- HUD provides mortgagees an automatic 90-day extension from the date of the moratorium expiration date to commence or recommence foreclosure action or to evaluate the borrower under HUD’s Loss Mitigation Program.
If the effects of Hurricane Matthew, or any other disaster, result in PDMDAs, mortgagees should reference the guidance in the Single Family Housing Policy Handbook 4000.1 (SF Handbook), including section III.A.3.c.ii, Moratorium on Foreclosures, and section III.A.3.c.iii, Monitoring of Repairs to Substantially Damaged Homes.
Source: HUD (FHA INFO #16-65 full version)