Industry News

HUD seeks to prevent real estate foreclosures in disaster areas

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U.S. Housing and Urban Development Secretary Alphonso Jackson today announced that he is instructing U.S. Federal Housing Administration-approved lenders to provide additional foreclosure relief to FHA-insured families who live or work in areas hardest hit by Hurricane Katrina and Rita. The relief affects all pending foreclosures of FHA-insured properties in the federally declared disaster areas designated by the Federal Emergency Management Agency as eligible for individual assistance, according to the HUD announcement. Additionally, the action is intended to block lenders from initiating new foreclosures, according to the announcement. Jackson is also encouraging lenders to undertake actions such as assisting borrowers with hazard and flood insurance filings, waiver of late charges, and mortgage modification. "It is important that families left devastated in the wake of these hurricanes are able to focus on rebuilding their lives, not worrying about losing their homes," Jackson sai...