Big banks and HUD give assistance after Hurricane Sandy

By Sari R. Updated on 11/1/2012

The United States Housing and Urban Development will give relief to homeowners and low-income renters in the state of New York who had to evacuate their homes as a result of Hurricane Sandy.  HUD provided a moratorium of 90 days on foreclosures as well as forbearance on FHA-insured mortgage foreclosures.

HUD has a mortgage insurance program under the National Housing Act that provides assistance to homeowners who have a destroyed residence.  This assistance comes in the form of 100% financing without any down payment.  HUD will provide foreclosure assistance to families who live in Suffolk, Queens, New York, Nassau, Richmond, Bronx and Kings counties. 

Representatives from HUD believe that it’s important for families who have been evacuated from their homes to know that help is readily available.  HUD’s Section 203(k) loan program allows homeowners who have lost their homes to refinance or finance the purchase of a home (with repair) through a single mortgage.  The biggest banking firms are also providing storm relief to NY homeowners by offering mortgage assistance and waiving fees.

Wells Fargo: will waive credit fees until 11/01/12.  The bank also said that existing East Coast mortgages should contact their lenders to discuss property insurance loss claims.

JPMorgan Chase: will waive extended overdraft, overdraft protection transfer and insufficient fund fees until 11/01/12. 

Citibank: will waive fees such as overdraft protection until 11/05/12. 

Bank of America: has a Customer Assistance Program for those who are able to receive support such as avoidance of early withdrawal fees or credit line increases.