HUD Aid for House Repos and Storm Victims in Mississippi
The Department of Housing and Urban Development (HUD) has announced a fast release of federal disaster assistance to Mississippi families who were forced out of their properties due to house repos, tornadoes, storms and flooding.
The federal disaster assistance program is targeting low-income renters and homeowners who lost their houses due to foreclosure and natural disaster, according to HUD Secretary Shaun Donovan.
The assistance program will cover 10 counties in Mississippi that recently were damaged by storms. The areas of Green, Amite, Lawrence, Lincoln, Jackson, Stone, Walthall, Wilkinson, Wayne and Simpson are declared disaster areas by President Barack Obama. The declaration has allowed the Federal Emergency Management Agency (FEMA) to provide disaster relief under its Individual Assistance Program.
Meanwhile, the disaster declaration will allow the HUD to provide foreclosure relief and other aids to qualified families living in the storm-damaged counties. It has also resulted to various federal assistance, such as temporary housing grants and house repairs, affordable loans to cover property losses and helping business owners and individuals recover from the impact of the disaster.
Donovan said that families who have been forced out of their homes, whether because of foreclosure or disaster, should be made aware of the availability of assistance that will allow them to rebuild their lives.
HUD offers residents of Mississippi an opportunity to re-allocate existing government resources from its HOME and Community Development Block Grant (CDBG) toward programs that will address residents’ critical needs, such as housing and other services for victims of flood and foreclosure.
Currently, the HUD is coordinating with Mississippi and local officials to explore ways to streamline the HOME and CDBG programs to speed up the replacement and repair of damaged houses due to storms.
On the other hand, the HUD allowed 90 days foreclosure delay and forbearance on troubled home loans insured by mortgage insurer, the Federal Housing Administration (FHA). Aside from house repos rescue efforts, the HUD makes available insurance for both home rehabilitation and mortgages under its Section 203(k) loan program.
The number of foreclosure filings in Mississippi jumped by 68 percent during the first quarter of 2009. The state ranked 42nd nationwide in terms of the total house repos for the quarter.
