FHA Extends Foreclosure Moratoriums for Borrowers Affected by Hurricanes Helene, Milton
The Federal Housing Administration on Friday extended the foreclosure moratoriums in connection with Hurricanes Helene and Milton through April 11, 2025.
In Mortgagee Letter (ML) 2024-25, Extension of the Foreclosure Moratoriums in Connection with Hurricanes Helene and Milton, FHA said mortgagees are required to implement this policy immediately.
“This extension provides homeowners with FHA-insured mortgages in Presidentially Declared Major Disaster Areas additional time to access federal, state, or local housing resources; consult with HUD-approved housing counselors; and/or rebuild their homes,” FHA said. “FHA believes these foreclosure moratorium extensions are warranted because of the devastation caused by Hurricanes Helene and Milton, the extensive property damage sustained, and the reduced capacity for those impacted to access needed resources. Many areas in Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia are deemed PDMDAs.”
The ML said borrowers with FHA-insured mortgages located in Hurricanes Helen and Milton PDMDAs should contact their mortgage or loan servicer immediately for assistance.
Borrowers can also obtain additional assistance by:
Visiting the FHA Disaster Relief site, calling the FHA Resource Center at 1-800-304-9320 to learn more about disaster relief options, or contacting a HUD-approved housing counseling agency, which they can find online or use HUD’s telephone look-up tool by calling (800) 569-4287. There is never a fee for foreclosure prevention counseling.
FHA said borrowers whose homes are destroyed or damaged to an extent that requires reconstruction or complete replacement should contact an FHA-approved lender about FHA’s Section 203(h) program, which provides 100% financing for eligible homeowners to rebuild their home or purchase a new one.
“For borrowers seeking to purchase and/or repair a home that has been damaged, contact an FHA-approved lender about FHA’s Section 203(k) loan program,” the ML said. “This program allows individuals to finance the purchase or refinance of a house, as well as the costs of repair or renovation, through a single mortgage.” The provisions of ML 2024-25 apply to all FHA Title II Single Family forward and Home Equity Conversion Mortgage programs.
