KERR COUNTY, Texas – The U.S. Department of Housing and Urban Development (HUD) announced that foreclosures on Federal Housing Administration-insured single-family mortgages will be placed on hold for 90 days in the Kerr County area due to recent flooding.
The Hill Country floods have resulted in dozens of deaths, making it one of the worst floods in Texas history.
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“Our hearts break as we witness the catastrophe unfolding in Texas,” HUD Secretary Scott Turner said in a news release. “The flash floods have claimed the lives of more than 100 Americans and displaced countless others. It is an unfathomable tragedy, and HUD will continue to provide resources and support as we pray for the Texas Hill Country community.”
According to the release, there are more than 900 FHA-insured mortgages in the Kerr County Presidentially Declared Major Disaster Area (PDMDA).
HUD is teaming up with mortgage servicers, among others, to assess the extent of the damage to properties with FHA-insured mortgages in the area.
The action supports President Donald Trump’s major disaster declaration for Texas.
These are the HUD guidelines and suggestions for those in the PDMDA area, according to the press release:
- The 90-day hold prohibits mortgage servicers from initiating or completing foreclosure actions on FHA-insured single-family forward or Home Equity Conversion mortgages in the Kerry County PDMDA. The hold, also known as a moratorium, is effective as of the President’s disaster declaration date.
- Borrowers unable to make their mortgage payments should contact their mortgage servicer for assistance as soon as is practical. Borrowers may also contact the FHA Resource Center at 800-CALL-FHA (1-800-225-5342) for assistance. The FHA Resource Center is prepared to accept calls from persons who are deaf or hard of hearing, as well as individuals with speech or communication disabilities. Information on how to make an accessible phone call is available at https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
- For borrowers and renters who need immediate housing and disaster recovery assistance, HUD-certified housing counselors are prepared to provide guidance on available options. To find a HUD-approved housing counseling agency, borrowers can use HUD’s online search tool or use our phone search by calling 800-569-4287.
- For borrowers whose homes are destroyed or damaged to an extent that requires reconstruction or complete replacement, contact an FHA-approved lender about FHA’s Section 203(h) loan program. This program provides 100 percent financing for eligible homeowners to rebuild their homes or purchase a new one.
- For borrowers seeking to purchase and/or repair a home that has been damaged, contact an FHA-approved lender about FHA’s Section 203(k) loan program. This program allows individuals to finance the purchase or refinance of a house, as well as the costs of repair or renovation, through a single mortgage.