The Housing Market Update

The Mortgage Bankers Association of America along with HUD and FHFA are all working together to offer financial relief to homeowners with mortgages.

Currently the affected area is limited to damaged caused by Harvey, however with an even powerful "Irma" on the way, there could be many more states added to the "disaster area" list:

The following forms of relief are available to people in impacted counties (Aransas, Atascosa, Austin, Bee, Bexar, Brazoria, Brazos, Caidwell, Calhoun, Cameron, Chambers, Colorado, Comal, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Grimes, Guadalupe, Hardin, Harris, Jackson, Jasper, Jefferson, Jim Wells, Karnes, Kerr, Kleberg, Lavaca, Lee, Leon, Liberty, Live Oak, Madison, Matagorda, Montgomery, Newton, Nueces, Refugio, San Patricio, Tyler, Victoria, Walker, Waller, Washington, Wharton, Willacy and Wilson counties.)

Foreclosure Relief.  HUD is granting a 90-day moratorium on foreclosures and foreclosure forbearance on Federal Housing Administration (FHA)-insured home mortgages located within the geographic boundaries of the disaster area.  A borrower can also qualify for foreclosure relief if he or she is a household member of someone who is deceased, missing or injured directly due to the disaster, or if his or her financial ability to pay mortgage debt was directly or substantially affected by  the disaster.  Separately, VA, Freddie Mac and Fannie have all announced a 90-day moratorium on Foreclosures.

Mortgage Insurance.   HUD’s Section 203(h) program provides FHA insurance to disaster victims who have lost their homes, enabling them to finance the purchase or rehabilitation of a home. Borrowers working with participating FHA-approved lenders may be eligible for 100% financing.  Additionally, HUD’s Section 203(k) loan program enables the purchase, refinance, and rehabilitation of a home that has been lost or damaged.

Wells Fargo, the nation's largest mortgage lender, said Monday that it was suspending all negative reporting to credit bureaus, collection calls and foreclosure procedures against customers in the impacted communities at least through the end of September.

Fannie and Freddie have also announced a Disaster Relief Forbearance Plan where homeowners do not have to make any mortgage payments during the forbearance period without any negative impact to their mortgage or credit rating.  Homeowners can request a second or extended forbearance term if they need it.

In order to get a forbearance, you must first contact your mortgage servicer. You can visit the MBAA.org website here for a contact list ofmortgage servicers.