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Local Records Office

Hurricanes and Wildfires Impacted Homeowners in Pekin, IL in the Past Few Years

The Local Records Office retrieved information on how hurricanes and wildfires impacted homeowners in 2017; the delinquencies of homes made homeowners behind on home mortgage rates, (in comparison to before these disasters struck) and how the HUD granted funds in efforts to relieve these metropolitan areas. While Pekin, Illinois and other metro areas are still struggling with mortgage delinquencies, the areas especially hurting the most, are where these hurricane and wildfire struck, “sticking out like a sore thumb” while the rest of the country thrives.

A report from Inman had measured the 30-day or more delinquency rates in January of 2018 at a total of 4.9% of loans with late payments, down from the 5.1% from the year prior, at a 0.2% decline. In efforts to help these victims’ and their families, the HUD has initiated a payout to help relieve and cover their housing expenses, as well, is budgeting to fix the infrastructures in preventative measures to future disasters happening.

Other grantees include the US Virgin Islands, where it also sustained severe damage from last year’s hurricanes, as well, Texas and Florida, struck by Hurricanes Harvey and Irma and Puerto Rico. Some money will also go towards California and the communities that have been affected by wildfires and mudslides.

In areas hit by the hurricanes in 2017 – and Northern California metros impacted by the wildfires –faces serious delinquency rates, representing that mortgages are 90 days past due, and remain higher than the rest of the country.

While these serious delinquencies are remaining elevated in these hard-hit markets, serious delinquency is triple than what it was before the hurricanes explained CoreLogic chief economist, Frank Nothaft, in the report.

The Hurricane Harvey’s monster storm with the surge of high winds and several feet at the height of the hurricane storm of the Texas coast had nearly 33,000 people in more than 230 shelters, and with 325,000 that signed up with disaster assistance, officials said.

Pekin, Illinois Homeowners Are Left With High Mortgage Rates

Homeowners are left with a number of options as some are unable to cover the expenses of making mortgage payments, if not budgeted properly

With “…the metropolitan areas affected by natural disasters, most of the country has seen delinquency and foreclosure rates move lower over the past year,” explained the CoreLogic president and CEO, Frank Martell, in the report. And he further implicated, “the rest of the country is reaping the benefits of low unemployment, rises in income and home price growth which is building home equity.”

While Congress approved the U.S. HUD funding last year, it is just now being released in an effort to help Harvey-hit areas in the form of CDBGs. Texas Land Commissioner George P. Bush criticizes the unnecessary delays in distributing Harvey relief funds. And the GLO said the HUD did not provide enough guidance on how this money could be used until February. The GLO said after a March meeting, an action plan is finally in place to distribute the $5 billion.

“The impact of Hurricane Harvey continues to disrupt the lives of so many Texans,” Bush said. “As we continue the long-term recovery process, the GLO’s Community Development and Revitalization team continues to work with local officials in all 49 affected counties to expedite the release of disaster recovery funds. Through the utilization of innovative recovery programs, we are positioning Texas for a more comprehensive recovery that will truly help rebuild.”

With a bulk of these funds going to homeowners toward assistance in rebuilding, other grants include money for home buyouts, affordable rental housing, infrastructure repairs, and economic revitalization

And Governor Greg Abbott has announced that Texas will be receiving another allocation from HUD of an additional $5.03 for disaster relief.

HUD is also sending an additional $791 million to Florida through its Community Development Block Grant –Disaster Recovery (CDBG-DR) Program in efforts to help homes and buildings damaged by Hurricanes Irma and Matthew.

The HUD Sec. Ben Carson made a statement that HUD had sent $616 million to Florida in November 2017 to help in hurricane recovery efforts.

In an effort to support “mitigation activities” the HUD describes “as actions are taken to protect people and property from the predictable damage from any future events, can include elevating homes, property buyouts, and hardening structures from wind and water.” And almost $550 million of that money is in response to disasters from 2017, the remainder—of almost $84 million—is in response to the disasters from 2016. Of more than $158 million has also been set aside in order to restore homes, businesses, and infrastructure that were also damaged by the storms.

The state now plans to craft a disaster recovery plan with recommendations of both local and citizen input on how funds will be spent

States and US territories obtain money from the Community Development Block Grant program, and then disbursed to both state and local agencies in line with federal rules.

HUD also offered disaster relief assistance also came available last year in California to the declared disaster area. That relief included foreclosure suspensions and other assistance including:

Immediate foreclosure relief: HUD announced it will grant 90-day moratorium on foreclosures for FHA-insured home mortgages. HUD also explained there were tens of thousands of FHA-insured homeowners in these impacted areas.

Forbearance and loan modification options: HUD is also offering forbearance and loan modifications for the FHA borrowers in these disaster areas.

Making mortgage insurance available: HUD will provide FHA insurance to disaster victims who lost their homes and has to either rebuild or buy another home. Borrowers –are eligible for 100% financing, including closing costs from FHA-approved lenders.

Making insurance available for both mortgages and home rehabilitation: The HUD’s Section 203 loan program will enable homeowners who have lost their home to finance a purchase or refinance a house along with repair through a single mortgage. It also allows homeowners with damaged homes to finance its rehabilitation.

Puerto Rico will also receive close to $18.5 billion from the US Department HUD in efforts to repair and fortify house, businesses, and infrastructure wrecked by Hurricane Maria.

The money is meant to support disaster recovery, also including rebuilding and developing housing

$10.2 billion to cover needs stemming from the disaster, and an additional $8.3 billion for “mitigation” activities and to protect from any future events.

Maria has made a landfall on September 20 in Puerto Rico, leaving millions of Islanders without power or running water. Many lost their homes and some were still living months later without functional roofs.

With Puerto Rico’s allocation of nearly a $28 billion HUD award to various places that have struck since 2015, stated in a news release.

While most of the families who lost their lives in Texas did not evacuate in time due to false information and guidance on when to evacuate, (based on previous evacuations backfiring), the Local Records Office states to plan and be prepared, and we need to make progress in prevention when dealing with these storms. Engage with your family and walk through the necessary steps in an event of a disaster.