HUD establishes single toll free number for disaster housing concerns

 

The U.S. Department of Housing and Urban Development (HUD) has established a single toll-free number to assist the victims of Hurricane Katrina. The number operates from 7 a.m. to 8 p.m. CST, seven days a week. Previously, HUD had toll free numbers for each of the different services provided by the agency, such as FHA insured-mortgages, Section 8, multi-family housing, lender information and public housing residents. Call 1-888-297-8675 for housing-related assistance and concerns.

 

Immediately after the hurricane, HUD instructed all FHA-approved lenders to provide foreclosure relief to FHA-insured families who are affected by Hurricane Katrina.  The relief includes a special 90-day moratorium on all foreclosures of FHA-insured properties in the presidentially-declared disaster areas. The agency also is encouraging lenders to undertake actions such as mortgage modification, refinancing, and waiver of late charges.  

 

HUD is also:

- Providing Temporary Housing and Shelter. HUD is identifying vacant multi-family housing and HUD-owned homes that could be used as temporary housing for those forced from their homes.  For more information about temporary housing go to www.fema.gov or call 1-888-297-8675.

- Reprogramming and Accelerating Federal Block Grants. Community Development Block Grant (CDBG) and HOME grantees may reprogram previously awarded grants to redirect their focus to disaster recovery activities but grantees must request the reprogram from HUD.

- Providing Relief for Indian Housing - HUD will provide Indian

Community Development Block Grant funding (up to $300,000 per grantee) for disaster relief for Indian Housing and Tribal areas.

- Providing Public Housing Reserve for Disasters and Emergencies - HUD has funding available for public housing authorities to help

rehabilitate damaged properties.

- Making Available Programs for Damaged or Destroyed Properties. HUD's Section 203(k) loan program enables homebuyers and homeowners who have lost their homes to finance both the purchase and/or refinancing of a house and the cost of its rehabilitation through a single mortgage.  It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home.  This

program encourages lenders to make mortgages available to borrowers who would not otherwise qualify for conventional loans on affordable terms and to residents of disadvantaged neighborhoods.

- Mortgage Insurance for Disaster Victims. HUD has a special mortgage insurance program under Section 203(h) of the National Housing Act to assist disaster victims.  Under this program, individuals or families whose residences were destroyed or damaged to such an extent that reconstruction or replacement is necessary are eligible for 100 percent financing.

- Offering Assistance to Ginnie Mae Issuers in Disaster Areas. Ginnie Mae will provide assistance to Mortgage-Backed Securities (MBS) issuers with significant concentrations of loans within the affected areas. The assistance includes help in making payments to MBS investors where homeowners are unable to make payment, and eliminating delinquent loans from delinquency statistics used in risk monitoring.