Major Disaster Declaration in PA Includes Mortgage Moratorium
On November 27, 2018, the Federal Emergency Management Agency announced that federal disaster assistance, including a three-month moratorium on FHA-Insured mortgages, has been made available to the Commonwealth of Pennsylvania to supplement Commonwealth, and eligible tribal and local recovery efforts in the areas affected by severe storms and flooding on August 10 to August 15, 2018.
Federal funding is available to the Commonwealth, eligible local governments and certain private nonprofit organizations on a cost-sharing basis for emergency work and the repair or replacement of facilities damaged by the severe storms and flooding in Bradford, Columbia, Lackawanna, Lycoming, Montour, Schuylkill, Sullivan, Susquehanna, Tioga, and Wyoming counties. All but one of these affected counties are within the NPLS service area.
The impacted counties have received a three-month moratorium on FHA-insured mortgages which began to run with the announcement on November 27. Interestingly, the mortgagee cannot initiate or complete foreclosure proceedings after the moratorium if that action will jeopardize the full recovery of a hazard or flood insurance settlement. While the moratorium is in place, mortgagors are still able to work with mortgagees and pursue all options for home retention.
Hopefully, this unexpected boon will allow more of our clients the opportunity to save their home.
Income eligible clients can apply to NPLS for assistance.