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HUD Institutes Foreclosure Moratorium for Rhode Island Storm Victims

As a result of the severe flooding in Rhode Island, ""HUD"":http://portal.hud.gov/portal/page/portal/HUD recently instituted a 90-day moratorium on foreclosures of[IMAGE]

""Federal Housing Administration"":http://www.hud.gov/offices/hsg/fhahistory.cfm (FHA)-insured mortgages in four counties across the state, including Kent, Newport, Providence, and Washington.

While the foreclosure suspension is only mandated for FHA-insured mortgages in these counties, Rhode Island's Attorney General, Patrick Lynch, is asking all lenders to consider voluntary moratoria on non-FHA mortgages as well.

The four-county foreclosure moratorium is just part of the support HUD is providing to Rhode Island homeowners and


low-income renters who were forced from their homes due to the ongoing storms.

""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.""

As part of these efforts, HUD has given Rhode Island the ability to re-allocate existing federal resources toward disaster relief, and the agency is offering state and local governments federally-guaranteed loans for housing rehabilitation, economic development, and repair of public infrastructure. Additionally, HUD said it is making mortgage insurance available for both mortgages and home rehabilitation through its Section 203(h) program.

Through this program, HUD plans to provide FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs. This program enables those who have lost their homes to finance the purchase of a house along with its repair through a single mortgage, and it allows homeowners who have damaged houses to finance the rehabilitation of their existing home.

About Author: Brittany Dunn


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