Fannie, Freddie Extend Foreclosure Moratorium for Huricane Sandy Victims

Jan 31 2013, 3:09PM

Homeowners whose homes were damaged by the late October super-storm Sandy are getting an extension of the mortgage relief extended immediately after the storm. The Federal Housing Administration (FHA) and Fannie Mae and Freddie Mac (the GSEs) will extend their respective 90 day moratoria on foreclosures and evictions that were authorized in November for an additional 90 days. Secretary of Housing and Urban Development Shaun Donovan and Edward J. DeMarco, acting director of the Federal Housing Finance Agency (FHFA) announced the extensions on Thursday. The moratoria apply to homeowners with properties in the nine states and the District of Columbia which were declared disaster areas after the Hurricane and halt both foreclosure starts and foreclosures already in process.

"It's all too clear that families need more time to get back on their feet without having a foreclosure or eviction hanging over their heads," said Donovan. "As we work to rebuild after this historic storm, we'll do everything we can to ease the crushing burden being faced by those homeowners, many of whom have been forced from their homes."

In addition to extending the foreclosure moratorium for 90 days, FHA is also suspending evictions of persons from properties secured by FHA mortgages in these affected counties through April 30, 2013.Freddie Mac and Fannie Mae said that, in addition to the foreclosure sale and eviction moratoria, homeowners impacted by Hurricane Sandy may be eligible for forbearance, loan modifications or waived late payment charges. FHFA's news release can be found here.