The U.S. Department of Housing and Urban Development (HUD) has announced an extension of foreclosure moratoriums for areas affected by Hurricanes Helene and Milton. The moratoriums, applicable to FHA-insured Single Family Title II forward and Home Equity Conversion Mortgages in Presidentially Declared Major Disaster Areas (PDMDAs), will now remain in effect until April 11, 2025.
Adrianne Todman, HUD Agency Head, stated, “When disaster strikes, we know that families and communities need not only resources, but time to recover.” She emphasized the Biden-Harris Administration's commitment to aiding those impacted by the hurricanes.
Following the hurricanes' impact, the FHA initially implemented automatic 90-day foreclosure moratoriums. These required mortgage servicers to pause all foreclosure actions in PDMDAs from the date each disaster was declared. Now extended through April 2025, this moratorium applies regardless of a disaster's declaration date. Furthermore, deadlines for servicers to perform legal actions related to foreclosures have been extended by an additional 180 days after the moratorium ends.
Adrianne Todman Deputy Secretary
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Federal Housing Commissioner Julia Gordon commented on the extension: “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.” This aims to provide homeowners more time to explore options with their mortgage servicer if they cannot resume regular payments due to disaster impacts.
Borrowers affected by these disasters are encouraged to contact their mortgage or loan servicer promptly. Several assistance options are available for those unable to continue regular mortgage payments. Resources include visiting the FHA Disaster Relief site or contacting the FHA Resource Center at 1-800-304-9320 for more information on relief options.
Additionally, borrowers can seek help from HUD-approved housing counseling agencies. These agencies offer support in determining assistance needs and identifying resources without any fee for foreclosure prevention counseling. Homeowners can find a HUD-approved agency online or use HUD’s telephone look-up tool at (800) 569-4287.
For homes requiring reconstruction or complete replacement due to hurricane damage, borrowers may consider contacting an FHA-approved lender about FHA’s Section 203(h) program which offers 100 percent financing for rebuilding or purchasing a new home. Those looking into purchasing or repairing damaged homes can inquire about FHA’s Section 203(k) loan program that finances purchase or refinance along with repair costs through one mortgage.
