Foreclosure Moratorium Extended For Some Maui Homeowners
Fire survivors with FHA loans on destroyed or damaged properties can breathe a little easier for the next few months.
Some relief is in sight for mortgage holders of properties that burned in August鈥檚 wildfires on Maui.
The Federal Housing Administration has announced it鈥檚 extending its disaster-related foreclosure moratorium in Maui County through May 6.
Since the deadly Aug. 8 fire in Lahaina, FHA announced a 90-day foreclosure moratorium, halting attempts by banks or other loan servicers from taking people鈥檚 homes, condos or properties away from them if they fell delinquent on mortgage payments.
The moratorium was due to expire on Wednesday, creating stress and uncertainty for many fire survivors who were facing the possibility of having to pay mortgages on destroyed properties while also covering rental payments on new temporary or longterm housing.
At many recent public meetings, fire survivors have spoken about how they didn鈥檛 know how they could financially survive, given Maui鈥檚 exorbitantly priced housing market.
鈥淲hen I visited Maui in September, I saw firsthand the damage inflicted by the devastating wildfires. The people of Maui are resilient, but they will need support for years to come to rebuild and recover,鈥澛Department of Housing and Urban Development Deputy Secretary Adrianne Todman said in a news release.
鈥淲ith today鈥檚 announcement, we are assuring homeowners in Maui that HUD is here to support them as they navigate next steps with their family,鈥 Todman added.
State Sen. Angus McKelvey, who represents Lahaina and who lost his condo in the fire, had asked President Joe Biden to take action to stop lenders from foreclosing on the owners of destroyed property. On Thursday, he welcomed the FHA announcement and said it was a good first step.
“I want to thank President Biden, Governor Green, Rep. Jill Tokuda and the other members of our federal delegation for delivering this much needed help. This action will help to stop the trauma of foreclosures for many families, especially for those whose homes are no longer standing,” McKelvey said in a press release.
McKelvey said he hopes Hawaii’s 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.”
Besides extending the foreclosure moratorium, FHA is also pushing back the deadline for mortgage servicers to perform certain legal actions related to foreclosure for an additional 180 days after the foreclosure moratorium expires.
Maui County borrowers with FHA-insured mortgages were advised to contact their mortgage or loan servicer immediately for assistance. Borrowers can also get help by visiting the聽聽or by calling the FHA Resource Center at 1-800-304-9320.
