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HUD Grants Foreclosed Home Relief to Kentucky Residents

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By : John Cutts    99 or more times read
Troubled homeowners and tenants in Kentucky will be helped by a package of federal disaster assistance announced by the U.S. Housing and Urban Development Department.

The state of Kentucky, especially Jefferson County, has been ravaged by severe storms, winds and flooding.

According to HUD Secretary Shaun Donovan, the package of relief includes foreclosed home prevention assistance for homeowners with FHA-insured loans.

This week, President Obama has issued a natural disaster declaration for Jefferson County, allowing HUD to provide federal assistance to families affected by the calamity.

Under the disaster declaration, the state of Kentucky will have the flexibility to divert existing federal resources, including the HUD Community Development Block Grant and the HOME programs, to disaster relief.

The state can spend millions of dollars allocated to CDBG and HOME for rehabilitating housing and restoring basic services for disaster victims. HUD has started working with state and local government officials to facilitate the release of funds for repairing damaged houses and replacing destroyed homes.

To help distressed homeowners, the HUD announced a 90-day foreclosure moratorium and foreclosure forbearance on home mortgages insured by the Federal Housing Administration.

Under the Section 203(h) program of the HUD, FHA will also provide 100 percent purchase financing, including closing expenses, to borrowers whose FHA-insured homes have been totally destroyed by the storms.

Meanwhile, the HUD Section 203 (k) program allows homeowners whose houses have been destroyed to refinance their loans and obtain loans for repair in a single mortgage loan.

Victims whose single-family houses have been damaged by the storms can obtain financing to repair their homes.

HUD will also provide loan funds to the state of Kentucky and its local governments under the Section 108 loan guarantee program for the repair of damaged and destroyed houses, rehabilitation of public infrastructure and implementation of economic development projects.

In the first week of August, Kentucky was battered by a storm that caused flash flooding in many areas across the state. Many parts of Louisville were underwater as the flooding worsened.

Over the past two years, Kentucky has been battered by natural disasters, including the historic ice storm that paralyzed the state in the last week of January and first week of February, causing widespread damage and cutting water and electric services.

Aside from the HUD, the Federal Emergency Management Agency has also extended help to victims of flooding across the state.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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