The US economy is going through a tailspin. Unemployment is at its peak and people are faltering on mortgage payments. Hence foreclosures are common. Banks are taking over the properties. Now the Federal government has come up with a stimulus package to help harassed homeowners. The Housing and Urban development too will provide assistance to people who have been forced out of their homes due to natural calamities. HUD Secretary Shaun Donovan said many people have been forced to evict homes because of floods and severe storms. Now the department will help those people.
Yesterday, President Obama issued a disaster declaration in Jefferson County. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county. Donovan says that families who have been compelled to leave their homes must know that they can get help for rebuilding their homes. Families who have availed of FHA loans but cannot pay them now, can take the help of HUD. The Department will also help others who are trying to rebuild their homes.
HUD will offer Community Development Block Grant (CDBG) to route dollars to developmental needs. There are many families who have lost their houses to natural calamities and HUD hopes to make their lives better. The Department is also in touch with the local officials to streamline the processes of repair of houses that have been damaged. This is being done under HUD’s Section 203(h) program. It may be noted here that many of these families have taken up the daunting task of buying another property when the original home was lost to disaster. The borrowers are
HUD has also granted immediate relief to families facing foreclosure. In fact, a 90-day moratorium was granted to these families. It may be noted that many of them had taken Federal Housing Administration (FHA) loans.
Under Section 203(k), HUD will make insurance available to families who have taken mortgage for home rehabilitation. This will enable them to buy the home of their dreams. It will also help them to repair their homes.
Not only individuals and families but HUD will also offer local and state governments loans for rehabilitation of homes. Loans will also be given for repair of infrastructure and economic development. HUD’s website has all the details of the programs that have been designed to help victims of disaster. Such programs will definitely inject new lease of life to the distraught economy.