HUD issued a press release regarding assistance for homeowners with FHA backed mortgages and problem drywall. HUD is allowing homeowners with drywall issues to be eligible for FHA’s Type 1 Special Forbearance as outlined in their “MORTGAGEE LETTER 2002-17”. This program allows lenders to incorporate any or all of the following to support the homeowner;
- Suspend or reduce mortgage payments while the homeowner replaces defective drywall.
- Establish a period during which the homeowner may make regular payments before making up any delinquencies on their payments.
- A repayment period of six months.
Replacing defective drywall is very expensive, time consuming and disruptive to one’s home. This program will at least help with the expense. Read the press release and the Mortgagee Letter for full program details.
We have published a number of posts regarding the Chinese drywall issue. To see a list of the articles simply type the word “chinese” in the search box on the home page.
Don Grafues
Resource: HUD
Resource: HUD
