The Department of Housing and Urban Development is extending its foreclosure moratorium through April on Federal Housing Administration-insured mortgages in areas impacted by Hurricanes Helene and Milton.
The two storms struck at the end of the third quarter and beginning of the fourth. Mortgage delinquencies surged in those
Typically, late payments rise initially in those storm-impacted areas as borrowers have to deal with damage and/or temporary job disruptions. But those normally cure quickly as residents get back on their feet. Some people, though, need additional time to recover.
In the aftermath of those storms, FHA
This extension of the moratorium applies to both forward and reverse mortgages insured by FHA.
"Because the consecutive Hurricanes Helene and Milton caused a great deal of damage and disruption, FHA believes it is appropriate to extend our foreclosure moratoriums by 120 days," said Federal Housing Commissioner Julia Gordon in a press release. "This extension will provide more time for homeowners to review a range of options with their mortgage servicer if they are unable to resume regular mortgage payments due to the impact of the disaster."
Corelogic estimated flood and wind related insured property losses as a result of Hurricane Milton were between $17 billion and $28 billion.
That was on top of
As to conforming mortgages, Freddie Mac and Fannie Mae have a forbearance policy, lasting for up to one year, for those borrowers whose loans they own that have been impacted by natural disasters.
"During this temporary reduction or pause in payments, homeowners will not incur late fees, and foreclosure along with other legal proceedings are suspended," a Fannie Mae October press release said.
On third quarter earnings calls, executives at some of the private mortgage insurers said
