FHA Disaster Relief For Those With FHA Mortgages

Hurricane Isaac has been a top story, but it certainly isn’t the only natural disaster story that’s gotten national attention in the summer of 2012. There have been plenty of fires, floods, storms and other problems for homeowners that force some to seek home loans, refinancing, even foreclosure avoidance while recovering from the damage caused by Mother Nature.

There are two kinds of FHA disaster relief available to qualified homeowners. One is specifically for those who already have FHA home loans, another is for any qualified borrower recovering from a disaster in a federally declared disaster area. For current FHA homeowners, the FHA official site has a set of questions for you:

“Was your home or your ability to make your mortgage payments harmed by an event that the President declared a disaster? You may qualify for relief to help you keep your home.”

Answer these four basic questions to see if you qualify for relief as an existing FHA borrower:

  1. Did my expenses rise or income fall?
  2. Were these changes in my finances caused directly or substantially by the disaster?
  3. Have I missed any mortgage payments?
  4. Am I without other resources, such as insurance settlements, to catch up?


The FHA/HUD official site states, “If you answered ‘yes’ to all of these questions, and you have a conventional or VA mortgage, contact your lender. If you have an FHA-insured mortgage, please continue reading.”

Can you qualify for FHA disaster relief on your FHA mortgage? The FHA official site says, “You must be in one of three basic groups in order to qualify for a moratorium on foreclosure:

  1. You or your family live within the geographic boundaries of a Presidentially declared disaster area, you are automatically covered by a 90-day foreclosure moratorium.
  2. You are a household member of someone who is deceased, missing or injured directly due to the disaster, you qualify for a moratorium.
  3. Your financial ability to pay your mortgage debt was directly or substantially affected by a disaster, you qualify for a moratorium.”


This type of disaster relief may also apply to those who are facing situations similar to those mentioned above, but who are paying on refinancing loans instead of “first loans” or new purchase home loans. Ask your lender for more information and be sure to contact the FHA directly for assistance if any of the above applies to you.

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