In response to the devastating wildfires in California, the Biden administration has announced immediate relief for affected homeowners. This includes a 90-day foreclosure moratorium on Federal Housing Administration (FHA) loans and additional disaster assistance programs.
Foreclosure Moratorium: What You Need to Know
The foreclosure pause applies to:
FHA-insured loans
Reverse mortgage loans under FHA's program in affected areas
Section 184 Indian Home Loan Guarantee Program for Native American borrowers
The moratorium took effect immediately following President Biden\u2019s disaster declaration. It provides temporary relief to help homeowners regain stability after the disaster.
Additional Disaster Relief Programs
The U.S. Department of Housing and Urban Development (HUD) is offering a range of federal disaster assistance, including:
Grants for temporary housing and home repairs
Low-cost loans to cover uninsured property losses
Support programs for individuals and business owners recovering from the disaster
Homeowners and business owners can explore these programs to aid in their recovery efforts.
Fannie Mae's Forbearance Options
For homeowners with loans backed by Fannie Mae, additional relief is available. Mortgage servicers can offer:
90-day forbearance plans if the servicer believes the property was affected by the disaster and cannot contact the homeowner.
Extended forbearance up to 12 months with options to reduce or suspend payments.
Cyndi Danko, senior vice president and chief credit officer for single-family at Fannie Mae, advises homeowners to act quickly. “If homeowners have been impacted by the fires, we encourage them to call their mortgage servicer for assistance as soon as possible.”
How to Access Relief
Homeowners should contact their mortgage servicer—the company they send monthly payments to—as soon as possible. Servicers can guide borrowers through available options, including forbearance and payment reduction plans.
Prioritizing Safety
Fannie Mae and HUD emphasize the importance of prioritizing safety during these challenging times. Relief measures are designed to alleviate financial strain so families can focus on recovery.
Take Action Today
If your home or livelihood has been impacted by the California wildfires, explore the relief options available to you. From foreclosure moratoriums to federal grants and loan programs, these resources aim to provide immediate support.
For more details, visit HUD’s Disaster Assistance Page. Reach out to your mortgage servicer to discuss tailored solutions for your unique situation.
Together, we can rebuild and recover
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