The Federal Housing Administration has ordered a 90-day temporary suspension of foreclosures in areas affected by Hurricane Sandy last week, the U.S. Housing and Urban Development announced Monday.Â
"I directed all FHA lenders to impose a moratorium on any foreclosures for 90 days in disaster-affected areas," Shaun Donovan, HUD secretary, told reporters. "We donâ€™t want families to be victimized twice -- once by the storm and once by a foreclosure."
Following the storm last week that ravaged the East Coast, mortgage giantsÂ Fannie Mae and Freddie Mac also announced mortgage relief for Sandy victims. Sandy victims with Fannie- or Freddie-backed loans might also qualify for temporary forbearance on their mortgages, possibly even up to a year.Â
Source: â€œUS Orders 90-day Suspension of FHA Foreclosures in Disaster Areas,â€ Reuters (Nov. 5, 2012)