U.S. Housing and Urban Development will provide support to the State of New York homeowners and low-income renters forced from their homes during Hurricane Sandy. HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of FHA-insured mortgages.
HUD has a special mortgage insurance program under Section 203(h) of the National housing Act to assist homeowners whose residences are destroyed or damaged far beyond repair or replacement is eligible for 100% financing. No down payment is required.
HUD will provide foreclosure relief and other assistance to families living in Bronx, Kings, Nassau, New York, Richmond, Suffolk and Queens counties.
"Families who may have been forced from their homes need to know that help is available to begin the rebuilding process," said U.S. Housing and Urban Development Secretary Shaun Donovan. "Whether it’s foreclosure relief for families with FHA-insured loans or helping these counties to recover, HUD stands ready to help in any way we can."
HUD’s Section 203(k) loan program also enables homeowners who have lost their residences to finance the purchase or refinance a home, with repair, through a single mortgage.
The top banking firms are also providing relief to those affected by the storm. The banks are waiving certain fees and offering assistance for those with mortgages.
JPMorgan Chase (JPM) announced that overdraft protection transfer, extended overdraft, returned item and insufficient funds fees for deposit accounts, along with other fees, would be waived until Nov. 1.
Wells Fargo (WFC) also announced that it would also waive similar fees as well as credit certain fees until Nov. 1. The institution also issued in a statement that customers with existing home mortgages in Maryland, Virginia, Washington, D.C., Delaware, Pennsylvania, New York, New Jersey and Connecticut should contact their local provider to discuss handling property insurance loss claims.
Citibank (C) will waive feeds in various categories, including overdraft protection, wiring funds to affected Citi customers and non-sufficient funds until Nov. 5. The banking institution also has services available for mortgage clients affected by the hurricane.
Banks of America (BAC) has a Customer Assistance Program for customers who are qualified to receive support on various options including, credit line increases on existing cards, lost, missing or late loan or credit payments and avoidance of early withdrawal penalties on bank certificates of deposit.
Vericrest Financial Inc., a premier financial services company that specializes in residential mortgage servicing, will follow all standards and policies put in place by the GSE's for all GSE-owned mortgages to those impacted by the storm in the upcoming months. The company also has agents in place to assist customers who need help with filing insurance claims.