source:
  type: guide
  id: hud-4000-1-iii-l-presidentially-declared-major-disaster-areas
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — l. Presidentially-Declared
    Major Disaster Areas (10/01/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — l. Presidentially-Declared
    Major Disaster Areas (10/01/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-l-presidentially-declared-major-disaster-areas-full
  canonical_id: hud-4000-1-iii-l-presidentially-declared-major-disaster-areas-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — l. Presidentially-Declared
    Major Disaster Areas (10/01/2025)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — l. Presidentially-Declared
      Major Disaster Areas (10/01/2025)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'l. Presidentially-Declared Major Disaster Areas (10/01/2025)
      i. Disaster Declarations Under the Robert T. Stafford Disaster Relief and Emergency
      Assistance Act, the President has authority to declare a major disaster for
      any area which has been affected by damage of sufficient severity and magnitude
      to warrant major disaster assistance. Disaster declarations and information
      regarding available federal assistance for each III. SERVICING AND LOSS MITIGATION
      A. Title II Insured Housing Programs Forward Mortgages 2. Default Servicing
      Handbook 4000.1 1276 Last Revised: 11/26/2025 disaster incident are posted on
      the Federal Emergency Management Agency’s (FEMA) website. Whenever the President
      declares a major disaster, the Mortgagee must implement the procedures set forth
      in this section for each designated area that is eligible for federal disaster
      assistance, designated for public assistance, individual assistance, or both,
      unless otherwise specified. ii. Moratorium on Foreclosures (A) Standard Mortgagees
      must attempt to contact Borrowers whose Property is located in a PDMDA to notify
      the Borrower that disaster loss mitigation assistance is available. If the first
      legal action has been completed or the Borrower has been referred to foreclosure,
      the Mortgagee must notify the Borrower that a foreclosure moratorium is in place
      for 90 Days beginning on the date of the disaster declaration for that area.
      FHA-insured Mortgages secured by Properties located in a PDMDA will be subject
      to a moratorium on foreclosures following the disaster declaration. The foreclosure
      moratorium is: • effective for a 90-Day period beginning on the date of the
      disaster declaration for that area (HUD may communicate further specific guidance
      for extension of moratorium periods for individual disasters); • applicable
      to the initiation of foreclosures and foreclosures already in process; and •
      considered an additional period of time approved by HUD for the Mortgagee to
      take loss mitigation action or commence foreclosure. HUD provides the Mortgagee
      an automatic 90-Day extension from the date of the moratorium expiration date
      to evaluate the Borrower under HUD’s Loss Mitigation for Borrowers in PDMDAs
      or commence or recommence foreclosure action. The Mortgagee may also submit
      a request for an additional extension to HUD’s foreclosure-related deadlines
      via HUD’s EVARS when prohibited from performing a required action due to the
      foreclosure moratorium. (B) Required Documentation The Mortgagee must retain
      in the Servicing File and the Claim File, if applicable, any approved extensions
      from HUD related to a foreclosure moratorium. (C) Hazard or Flood Insurance
      Settlement The Mortgagee must take no action to initiate or complete foreclosure
      proceedings, after expiration of a disaster-related foreclosure moratorium,
      if such action will jeopardize the full recovery of a hazard or flood insurance
      settlement. III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs
      Forward Mortgages 2. Default Servicing Handbook 4000.1 1277 Last Revised: 11/26/2025
      iii. Monitoring of Repairs to Substantially Damaged Homes (A) Definition A building
      is considered to be “Substantially Damaged,” as defined in the National Flood
      Insurance Program (NFIP) regulations, when “damage of any origin is sustained
      by a structure whereby the cost of restoring the structure to its before damaged
      condition would equal or exceed 50 percent of the market value of the structure
      before the damage occurred.” (B) Standard The Mortgagee must take appropriate
      actions to ensure that repairs to Substantially Damaged Properties comply with
      the federal building elevation standards, including those established by FEMA.
      The Mortgagee must ensure compliance with any higher applicable building elevation
      standard adopted by the state or local government. iv. Loss Mitigation for Borrowers
      in PDMDAs Mortgagees must attempt to contact Borrowers whose Property is located
      in a PDMDA to notify the Borrower that disaster loss mitigation assistance is
      available. If the Borrower is experiencing a Financial Hardship due to the disaster,
      the Mortgagee must offer loss mitigation assistance, where appropriate. (A)
      Disaster Forbearance for Borrowers in PDMDAs The Mortgagee may offer a Disaster
      Forbearance, which allows for one or more periods of reduced or suspended payments
      without specific terms of repayment, to a Borrower with a mortgaged Property
      or place of employment located within a PDMDA. The Mortgagee must ensure the
      Disaster Forbearance meets the requirements for Forbearances except: • the requirement
      that first legal action to initiate foreclosure has not been completed does
      not apply to Disaster Forbearances; and • the Disaster Forbearance Time Frames
      apply. The Mortgagee must waive late fees when the Borrower is on a Disaster
      Forbearance. III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing
      Programs Forward Mortgages 2. Default Servicing Handbook 4000.1 1278 Last Revised:
      11/26/2025 (B) Disaster Forbearance Time Frames Borrower Characteristics Requirements
      Initial Disaster Forbearance Period Additional Disaster Forbearance Period Maximum
      Disaster Forbearance Period (for each PDMDA) Borrower has been in contact with
      Mortgagee The Mortgage must offer the Borrower on a Disaster Forbearance if:
      • the Property or Borrower’s place of employment is in a PDMDA; • the Mortgagee
      has made contact with the Borrower; • regardless of occupancy status; and •
      regardless of previous delinquency. Up to 6 months Up to 6 months Up to 12 months
      Mortgagee has not established contact with the Borrower The Mortgagee may place
      a Borrower on an initial 3 month Disaster Forbearance if: • the Property is
      in a PDMDA; • the Mortgagee has been unable to contact the Borrower; • the Mortgage
      was current or no more than 2 months Delinquent prior to the disaster event;
      and • the Mortgage goes into Default in the 90 Days after the month the PDMDA
      was declared. Up to 3 months Up to 9 months, only if Borrower contact has been
      established Up to 12 months, only if Borrower contact has been established Borrower
      on a Forbearance prior to the PDMDA The Mortgagee must terminate the Borrower’s
      current Forbearance at the end of the month the PDMDA was declared and place
      the Borrower on an initial 6 month Disaster Forbearance starting the following
      month. Up to 6 months Up to 6 months Up to 12 months III. SERVICING AND LOSS
      MITIGATION A. Title II Insured Housing Programs Forward Mortgages 2. Default
      Servicing Handbook 4000.1 1279 Last Revised: 11/26/2025 Borrower Characteristics
      Requirements Initial Disaster Forbearance Period Additional Disaster Forbearance
      Period Maximum Disaster Forbearance Period (for each PDMDA) Borrower who requires
      additional time to complete substantial repairs to Property The Mortgagee may
      provide extended additional Disaster Forbearances periods for Borrowers in PDMDAs
      while they are pursuing substantial home repairs related to the disaster, provided
      that: • the Property was Substantially Damaged by the disaster; • the Forbearance
      period does not exceed the estimated time needed to complete home repairs; and
      • the total Forbearance period does not exceed 24 months. Up to 6 months Up
      to 18 months Up to 24 months (C) Disaster Repayment Plan For Borrowers in or
      impacted by a PDMDA, the Mortgagee must review the Borrower for a Repayment
      Plan. (D) Permanent Home Retention Options For Borrowers in or impacted by a
      PDMDA, the Mortgagee must review the Permanent Home Retention Options to offer
      the Borrower a Permanent Home Retention Option, including a TPP where required,
      with the following exceptions: • The limit on receiving no more than one Permanent
      Home Retention Option within 24 months does not apply. • The requirement that
      a minimum of four Mortgage Payments have been paid by the Borrower for a Permanent
      Home Retention Option does not apply. • If the Property was Substantially Damaged,
      the Property repairs must be completed to a habitable condition. • The Mortgagee
      must waive late fees when the Borrower is on a Disaster Forbearance. The Borrower
      can only receive one Permanent Home Retention Option for each PDMDA. III. SERVICING
      AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 2.
      Default Servicing Handbook 4000.1 1280 Last Revised: 11/26/2025 The Mortgagee
      must ensure the Permanent Home Retention Option is reported with the appropriate
      Disaster Delinquency/Default Status (DDS) Code. (E) Terms of the Mortgage are
      Unaffected Nothing in this section confers any right to a Borrower to any loss
      mitigation or any other action by HUD or the Mortgagee. Further, nothing in
      this section interferes with any right of the Mortgagee to enforce its private
      contractual rights under the terms of the Mortgage. All private contractual
      rights and obligation remain unaffected by anything in this section. Where a
      Mortgagee chooses to enforce its contractual rights after expiration of any
      automatic foreclosure moratorium, the standard time frames to initiate foreclosure
      and reasonable diligence in prosecuting foreclosure following expiration of
      a foreclosure moratorium will apply. (F) Home Disposition Options Pre-Foreclosure
      Sale (PFS) or Deed-in-Lieu (DIL) of Foreclosure are also available to Borrowers
      with a mortgaged Property or place of employment located within a PDMDA, where
      the requirements for Home Disposition Options are met. (G) Suspension of Reporting
      to Consumer Reporting Agencies The Mortgagee must suspend reporting of delinquencies
      to consumer reporting agencies for a Borrower who is granted disaster-related
      Mortgage Payment relief and is otherwise performing as agreed. Mortgagees are
      required to comply with the credit reporting requirements of the Fair Credit
      Reporting Act (FCRA); however, FHA encourages Mortgagees to consider the impacts
      of a disaster on Borrowers’ financial situations and any flexibilities a Mortgagee
      may have under the FCRA when taking any negative credit reporting actions.'
  judgment: false
