The U.S Department of Housing and Urban Development has issued a 90-day moratorium on foreclosures of FHA-insured mortgages for homeowners in the New York region, the agency said today.
The measure applies to homes across New York City and Long Island’s Nassau and Suffolk counties, and comes as a result of President Barack Obama’s disaster declaration for areas affected by Hurricane Sandy.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” HUD Secretary Shaun Donovan said in a statement. “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.”
In addition, borrowers from FHA-approved lenders who lost their homes as a result of the hurricane are eligible for 100 percent financing – including closing costs – if they must rebuild their current home or buy a new one.
Other assistance includes allowing New York State to allocate existing federal funding to address the repair and replacement of housing units damaged in the storm. – Zachary Kussin