President Obama Tuesday issued a disaster declaration for 15 New York and New Jersey counties damaged by Hurricane Sandy that opens the door for mortgage bankers to offer foreclosure relief to borrowers with government-backed loans.
The New York counties include: Bronx, Kings, Nassau, New York, Richmond, Suffolk, and Queens. The New Jersey counties encompass Atlantic, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean and Union.
Meanwhile, the Department of Housing and Urban Development imposed a 90-moratorium on foreclosures of FHA-insured loans. Servicers are expected to exercise forbearance on foreclosures in the Hurricane impacted counties.
Freddie Mac is allowing it servicers to suspend foreclosure and eviction proceedings for up to one year, according to Tracy Mooney, senior vice president of single-family servicing, and REO at the GSE.
“Freddie Mac has authorized the nation's mortgage servicers to provide a full range of mortgage relief options to affected borrowers with mortgages owned or guaranteed by Freddie Mac,” Mooney said.
In disaster counties, HUD also can offer special loan programs for homeowners seeking to rebuild or repair their homes. HUD also provides loan programs to state and local governments seeking to rehabilitate housing or repair public infrastructure.
“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 families with FHA-insured loans or helping these counties to recover, HUD stands ready to help in any way we can,” Donovan said.
Fannie Mae also is allowing its servicers to exercise forbearance in areas hit by Hurricane Sandy.
“Under Fannie Mae’s disaster relief guidelines, a servicer may temporarily suspend or reduce a homeowner’s mortgage payments for up to ninety days if the servicer believes a natural disaster such as Hurricane Sandy has adversely affected the value or habitability of the property or if the natural disaster has temporarily impacted the homeowner's ability to make payments on their mortgage,” the mortgage giant said.
The hurricane has
