PDA

View Full Version : Hurricane Victims to Get Mortgage Relief



DebraLiStarr
12-05-2005, 12:49 PM
Glad to see that legislation is working to assist those in need.

Link to news story (http://news.yahoo.com/s/ap/20051205/ap_on_bi_ge/katrina_mortgage_relief;_ylt=AmR1DuVtB7ufihTcOUCiv PsO57EF;_ylu=X3oDMTBjMHVqMTQ4BHNlYwN5bnN1YmNhdA--)
Hurricane Victims to Get Mortgage Relief

By MICHAEL J. SNIFFEN, Associated Press Writer
Mon Dec 5,12:31 AM ET



WASHINGTON - The Federal Housing Administration will launch a program to pay the mortgages of up to 20,000 victims of hurricanes Katrina, Rita and Wilma for as much as a year.

The unprecedented mortgage relief will be offered to people who own homes with FHA-insured mortgages in designated hurricane-ravaged parts of Alabama, Florida, Louisiana, Mississippi and Texas.

"These families have been devastated, Not only are they living far from home right now, but many have lost their source of income," Housing and Urban Development Secretary Alphonso Jackson said in remarks prepared for delivery when the program is announced Monday.

"We want to help end that hopeless feeling for them, by letting them come back home and concentrate on putting their lives in order without having to worry about making mortgage payments," Jackson said.

The program is the latest of several steps by the department and its housing administration to address the mortgage woes of hurricane victims. On Nov. 23, Jackson extended a moratorium by three additional months, until Feb. 28, on foreclosures against FHA-insured families damaged by Katrina or Rita. A freeze on foreclosures on FHA-insured Wilma victims lasts until Jan. 22.

In contrast to the plan for federally insured mortgages, much of the private mortgage industry in September voluntarily granted a three-month freeze on foreclosures on mortgages without federal insurance. But that grace period is ending. Many of these mortgage-holders are being asked to resume payments even back ones this month.

The FHA's plan could cost as much as $200 million if all the estimated 20,000 eligible homeowners apply, federal officials say. But none of that total would be taxpayer funds. The money would come from FHA insurance reserves funded by premiums paid by borrowers who have FHA-insured mortgages, the officials say.

Ultimately, the homeowners would have to repay the FHA, but under very generous terms. The federal mortgage payments would be interest-free loans not due until the homeowner's original FHA-insured mortgage was paid off.

To obtain the mortgage assistance, the homeowners would have to sign a subordinate, interest-free mortgage payable to the FHA for the amount of assistance, which would cover principal, interest, taxes and insurance for up to 12 months.

Participants would have to be committed to staying in these homes and either able to live in them now or have the money from insurance payments or elsewhere to repair or rebuild the homes within 12 months. In this way, Jackson said, the program "is also an investment in the long-term stability of their neighborhoods."

Kurt Pfotenhauer, senior vice president of the Mortgage Bankers Association, said the amount of financial aid offered "will help many borrowers get their lives back on track and allow them to focus on the formidable task of rebuilding."

To be eligible, borrowers must:

_have an FHA-insured first mortgage on their primary residence.

_live or be employed full time in those counties or parishes of the five states declared eligible for individual assistance as a result of one of the three hurricanes.

_be able to show they are temporarily unable to pay their monthly mortgage as a result of increased living expenses, hurricane damage to their property or loss of income like temporary unemployment.

_expect to be able to resume full mortgage payments within 12 months.

_have missed at least four but not more than 12 payments on their FHA-insured mortgage.

The money cannot be used for repairs, but HUD has other programs that provide loans for disaster-related repairs.

Interested homeowners should contact their lenders, who will determine if they meet eligibility requirements, or call HUD's national servicing center at 1-888-297-8685.

___

On the Net:

Housing and Urban Affairs Department: http://www.hud.gov and http://espanol.hud.gov

eg8r
12-05-2005, 01:02 PM
[ QUOTE ]
Glad to see that legislation is working to assist those in need.
<hr /></blockquote> I don't agree. What about every other natural disaster. Should our government be leaned on every time life deals you (not you personally) a bad hand? We had 3 hurricanes last year and I know plenty of people who lost their homes, and I don't remember the government paying their mortgage. How about all the trailers that are lost every time a tornado rips through the park? The government does not pay their mortgage for them?

We have thousands of hurricane victims living in hotels for free. Food paid for, bed paid for, and free access to a pool 24/7. Are these people going out and looking for jobs to get their lives back together? Not a large part of them. They are sitting around swimming in the pool and watching free cable. Now the government is going to pay their mortgage for a year? Give me a break. Give me one good reason why they should look for a job, at least for the next year?

I know this post comes across as unsympathetic ( I wish I could express my thoughts differently), but I just wonder how long is long enough. How much money is going to be enough? If there is any good news in hearing this, it is that they have a put a cap on the length of time.

eg8r

DebraLiStarr
12-05-2005, 03:58 PM
Ed,

I lost my home to Hurricane Charles in 2004. I am still battling it out over that mess. I am glad to see that others will not have to endure the same BS I have had to go through for the past 15 months.

Deeman3
12-05-2005, 04:20 PM
Ed,

Does this mean the end to having to insure for natural disasters? If so, we can build on that active volcano now....

Deeman

eg8r
12-06-2005, 04:49 AM
Exactly.

eg8r

pooltchr
12-06-2005, 05:31 AM
<blockquote><font class="small">Quote DebraLiStarr:</font><hr> The FHA's plan could cost as much as $200 million if all the estimated 20,000 eligible homeowners apply, federal officials say. But none of that total would be taxpayer funds. The money would come from FHA insurance reserves funded by premiums paid by borrowers who have FHA-insured mortgages, the officials say. <hr /></blockquote>

If the above is true, then I think this is a great program. Those who get the benefit are the same ones who have paid the premiums to fund the program. Just like you can purchase mortgage insurance in the event you lose your job or become disabled, it benefits those who have taken responsibility for planning for an emergency situation.
Makes a lot of sense to me...
Steve

Sid_Vicious
12-06-2005, 06:11 AM
Debri...I had an opportunity to help one of the victims with transportation and some cash here in Dallas, recently residing at a LaQuinta Inn at the time. One needs to actually digest up close and personal just what your life would be like if something like your city was destroyed and you were thrust in a motel 400 miles away, basically relying on charity and hoping the 7-11 is close to the motel. Think about that for a few minutes. ANYONE, imo who chooses to be righteous against their real needs is obviously warm and fuzzy inside their own stable little world. Kinda makes me wonder about some people's genuine, or lack of, Christian fiber. Sure there are bums using the system, but there's average Joes and Jollene's who's demolished and dependent on what the social services gives them. It is tough hearing someone say, "I'm really hurting, and I've never asked for money" all close to Thanksgiving as well. Jm2c and I'm sticking to it...sid

eg8r
12-06-2005, 10:09 AM
[ QUOTE ]
Think about that for a few minutes. ANYONE, imo who chooses to be righteous against their real needs is obviously warm and fuzzy inside their own stable little world. Kinda makes me wonder about some people's genuine, or lack of, Christian fiber. <hr /></blockquote> The problem with your post here is that you are assuming, and you know the saying, and you are proving it correct. The only person questioning someone's "Christian fiber" is you, and basically that does not mean a hill of beans to anyone but you. You really don't know that the person making statements on this board has provided a room in their own home, a vehicle to drive, and time to help with interviewing for new jobs for people who have been misplaced and "stranded" in the aftermath of the storm. So basically what leads you to wonder is merely your own ignorance and quickness to jump in and question someone that does not have the same idea as yourself and you use that crutch of Christianity to add some power when basically you have no basis for anything you have said.

eg8r

Deeman3
12-06-2005, 10:24 AM
<blockquote><font class="small">Quote Sid_Vicious:</font><hr> Debri...I had an opportunity to help one of the victims with transportation and some cash here in Dallas, recently residing at a LaQuinta Inn at the time. One needs to actually digest up close and personal just what your life would be like if something like your city was destroyed and you were thrust in a motel 400 miles away, basically relying on charity and hoping the 7-11 is close to the motel. Think about that for a few minutes. ANYONE, imo who chooses to be righteous against their real needs is obviously warm and fuzzy inside their own stable little world. Kinda makes me wonder about some people's genuine, or lack of, Christian fiber. Sure there are bums using the system, but there's average Joes and Jollene's who's demolished and dependent on what the social services gives them. It is tough hearing someone say, "I'm really hurting, and I've never asked for money" all close to Thanksgiving as well. Jm2c and I'm sticking to it...sid <hr /></blockquote>

<font color="blue"> Sid,

We,as in me, my wife and my company, have had an opportunity to help many more than one person from the disaster and have done so. I have also hired over 60 persons displaced by Katrina. As well, Christian relief services were the first in this area to offer real immediate help. I don't believe questioning our Christian Fiber, is a very nice way to say you disagree with the fact some of us don't believe we should serve as long term national insurance for everyone. Is this just a general unfounded feeling you have against Christians or do you think we just don't measure up to your Christian ideals?

If you don't like our right to feel differently about how we help, don't question our Christianity just say you want to pretend superiority from the left and we will listen.

We won't make you look at a Christmas Tree, don't worry...</font color>

DebraLiStarr
12-06-2005, 12:24 PM
<blockquote><font class="small">Quote Sid_Vicious:</font><hr> Debri...I had an opportunity to help one of the victims with transportation and some cash here in Dallas, recently residing at a LaQuinta Inn at the time. One needs to actually digest up close and personal just what your life would be like if something like your city was destroyed and you were thrust in a motel 400 miles away, basically relying on charity and hoping the 7-11 is close to the motel. <font color="blue">Think about that for a few minutes. ANYONE, imo who chooses to be righteous against their real needs is obviously warm and fuzzy inside their own stable little world. Kinda makes me wonder about some people's genuine, or lack of, Christian fiber.</font color> Sure there are bums using the system, but there's average Joes and Jollene's who's demolished and dependent on what the social services gives them. It is tough hearing someone say, "I'm really hurting, and I've never asked for money" all close to Thanksgiving as well. Jm2c and I'm sticking to it...sid <hr /></blockquote>

Think about that? I had a family of 6 living in one of the home that I timeshare. They took full advantage of the situation. I just posted this news story, I didn't write it. I'm just gald something is being done because I have been through similar circumstances (insurance-wise) yet I do not compare the devastation our area suffered to the destrcution left bt Katrina. I don't feel sorry at all for the family that took advantage of my kindness. They corrupt the system and prevent help from reaching those that need it and appreciate it. I dont understand what you are insinuating in your message. Care to clarify? /ccboard/images/graemlins/confused.gif Is it directed at me or towards someone else? It looks as if it was directed to me. I highlighted the remarks I am confused about. I would be more than happy discussing this issue with you privately in a phone conversation as I dont feel the need to brag about my good deeds in this forum. If those comments were a backhanded comment towards me, then I will ask you to speak with me, get to know me a little bit better prior to passing judgment on me. If I am taking your comments the wrong way, then please clarify either here, or privately. In closing, I would like to say that I know what it is like to lose my home in a hurricane. I also know what it is like to not have a home to call your own for months on end while having to wait for the insurance companies to get to your file that is placed in a pile of thousands of claims. I also know what it is like to help out the people displaced by Katrina. I have donated my properties, and I have donated money as well.So what is your point, and what do I need to think about?

Debra