Severe storms, winds and flooding in South Dakota earlier this summer led President Joe Biden to issue a formal disaster declaration for the state, which included aid to borrowers with government-guaranteed mortgage financing. U.S. Department of Housing and Urban Development (heads-up display).
The president declared a state of emergency in South Dakota on August 15 and “ordered federal assistance to supplement state, tribal and local recovery efforts in areas affected by severe storms, straight-line winds and flooding.” White House Announce.
The relief is available between June 16 and July 8 in Aurora, Bennett, Bonhomme, Brewer, Buffalo, Charles Meeks, Clay, and Davidson counties. County, Douglas County, Gregory County, Hand County, Hanson County, Hutchinson County, Jackson County for those affected by extreme weather events. Dee, Sanborn, Tripp, Turner, Union and Yankton.
That means about 28% of the state is eligible for HUD relief, which includes a 90-day moratorium on foreclosures on HUD-insured mortgages. federal housing administration (FHA), and foreclosures on the mortgages of Native American borrowers under the Section 184 Indian Home Loan Guarantee Program.
Federally insured reverse mortgages also receive an automatic 90-day extension through the Home Equity Conversion Mortgage (HECM) program. This relief, including suspensions and extensions, applies for 90 days after the disaster declaration is issued on August 15. White House.
Affected mortgage borrowers are advised to contact their lender or servicer immediately to advise them of their need for assistance and possible changes in their ability to meet their loan financial obligations. Conventional borrowers may qualify for mortgage holder relief.
HUD has been active in providing relief to borrowers who received government-guaranteed loans due to a series of natural disasters.
The department has been actively monitoring the ongoing situation in Maui, Hawaii, following last summer’s devastating wildfires. It also provides relief to natural disaster victims in states like Texas and Florida, updated its own climate resiliency plans due to an increase in extreme weather events and issued final rules to address flood risks.
