Federal Housing Finance Agency Director Ed DeMarco and HUD Secretary Shaun Donovan said the federal housing agencies will extend foreclosure protections for homeowners displaced or negatively impacted by Hurricane Sandy.
Donovan and DeMarco said an existing foreclosure moratorium, that is about to expire, will be extended for another 90 days to offer families in the impacted region more time to recover.
The announcement blocks the initiation of new foreclosures and stalls any foreclosures already in process within disaster areas. The Federal Housing Administration also is suspending evictions on properties secured by FHA mortgages in areas impacted by the storm through April 30, 2013.
“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 with HUD. “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.”