Federal Housing Administration extends current foreclosure protections for borrowers in Maui County

The Federal Housing Administration has extended current foreclosure protections for borrowers in Maui County to assist those impacted by the August wildfires. Under the protection, mortgage servicers will be prohibited from initiating or completing foreclosure actions through May 6, 2024.

State Senator Angus L.K. McKelvey of West Maui responded to the news saying the action will help stop the trauma of foreclosures for many families, especially for those whose homes are no longer standing following the August wildfires.

He said that while it is an important first step, he hopes federal partners and others will continue to work towards deferment of mortgages for owner occupied properties, especially multimember households, as well as other types of forbearance that could be used to help forestall the sale of Lahaina.

FHA implemented an automatic 90-day foreclosure moratorium that required mortgage servicers to halt the initiation or completion of all foreclosure actions in Maui County on August 10, 2023, when the disaster occurred. The moratorium was originally set to expire on November 8, 2023. In addition to extending the foreclosure moratorium through May 6, 2024, FHA is also extending the deadline dates for servicers to perform certain legal actions related to foreclosure for an additional 180 days following the end of the foreclosure moratorium.

Borrowers in Maui County with FHA-insured mortgages impacted by the Maui wildfires should contact their mortgage or loan servicer immediately for assistance. Borrowers can also obtain additional assistance in the following ways:

• Visit the FHA Disaster Relief site or call the FHA Resource Center at 1-800-304-9320 to learn more about disaster relief options.
• Contact a HUD-approved housing counseling agency. These agencies have counselors available to assist those impacted by natural disasters in determining assistance needs and identifying available resources. Homeowners can find a HUD-approved housing counseling agency online or use HUD’s telephone look-up tool by calling (800) 569-4287. The telephone look-up tool includes access to information in more than 250 different languages. Borrowers do not have to have an FHA-insured mortgage to meet with a HUD-approved housing counseling agency. There is never a fee for foreclosure prevention counseling.
• For borrowers whose homes are destroyed or damaged to an extent that requires reconstruction or complete replacement, contact an FHA-approved lender about FHA’s Section 203(h) program. This program provides 100 percent financing for eligible homeowners to rebuild their home or purchase a new one.
• For borrowers seeking to purchase and/or repair a home that has been damaged, contact an FHA-approved lender about FHA’s Section 203(k) loan program. This program allows individuals to finance the purchase or refinance of a house, as well as the costs of repair or renovation, through a single mortgage.