Nov 12

Hurricane Sandy, the Elections, and the Housing Sector

Hurricane Sandy and Foreclosure DefenseBetween Hurricane Sandy and the elections, the mainstream media has had its hands full for the past few weeks. The housing sector saw its ups and downs, with political critics questioning the future of HARP and HAMP if President Obama had lost the election. Meanwhile, Hurricane Sandy has resulted in estimated losses of about 20 billion dollars, a figure bound to multiply as more numbers come in.

So where does that leave an American citizen facing foreclosure? Unless some new regulations are introduced, the homeowners’ situation is exactly the same as it was before the election. However, if you are a homeowner located on the East Coast, and if the hurricane damaged your property, you may be eligible for FHA financing announced by HUD a few days ago.

The properties destroyed as a result of Hurricane Sandy leave  homeowners with a long struggle ahead to build back their homes from scratch. Those covered by insurance and/or eligible for FHA loans may be able to gather enough financial resources to undertake the rebuilding process. Unfortunately, many residents of New Jersey, where foreclosed homes were up 0.9 percent from last year, will find themselves in further financial peril.

The unemployment rate in New Jersey was up 9.8 percent and some homeowners had just fully recovered from the effects of last year’s Hurricane Irene. The HUD announcement comes as a sigh of relief for those devastated by Hurricane Sandy;  but given the rate of delinquency and unemployment, these relief efforts may not be enough to help financially struggling homeowners.

We are hopeful that the authorities will announce further relief for Hurricane Sandy victims once better estimates of the devastation caused by the super-storm come in. If the unemployment rate and the mortgage situation is also factored in, the relief required by the affected homeowners of the East Coast will be much larger than the current figure of $20 billion dollars. The housing sector is in dire need of help.

If you are a homeowner facing foreclosure, or are in need of a loan modification, get a free consultation now. The attorneys at Amerihope Alliance Legal Services will be more than happy to discuss your case with you.

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