December 2, 2011 (Shirley Allen)
The Department of Housing and Urban Development (HUD) has announced they will provide disaster relief assistance to homeowners and low-income renters in New Jersey who have been forced from their homes following severe storms that struck in October.
The Counties eligible for disaster relief assistance are Cape May, Essex, Hunterdon, Morris, Somerset, Sussex, Union and Warren.
“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.”
Available assistance includes:
– Granting immediate foreclosure relief: HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
– Offering the State and other entitlement communities the ability to re-allocate existing federal resources toward disaster relief: HUD’s Community Development Block Grant (CDBG) and HOME programs give the States and communities the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department’s CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
– Making mortgage insurance available: HUD’s Section 203(h) program provides 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;
– Making insurance available for both mortgages and home rehabilitation: HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and
– Offering Section 108 loan guarantee assistance: HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
More information about disaster assistance is available on HUD’s website.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance