Federal assistance is on the way for distressed NYC homeowners having an FHA-insured mortgage on their homes.
The U.S. Department of Housing and Urban Development has granted a 90-day foreclosure moratorium to NYC borrowers of FHA-insured loans as a result of the damage caused by Hurricane Sandy. This means that foreclosure activity involving thousands of distressed homes across New York City, Nassau and Suffolk counties will stop for the next 90 days. Homeowners can use this time to assess their debt situation and find payment alternatives.
The Department of HUD is also ready to extend help to those who have lost their homes completely due to the tropical storm, if they borrowed from a FHA-approved lender. Those may be eligible for 100% financing for buying new or rebuilding their homes, according to the same official HUD press release .
Secretary Shaun Donovan stated that more assistance in the form of federal funding will become available immediately in order to start the recovery process.