HUD Freezes Foreclosures on FHA Mortgages in Texas Flood Zone
Industry Update
July 9, 2025
Source: National Mortgage Professional
In response to devastating floods that have ravaged Texas Hill Country since early July, the U.S. Department of Housing and Urban Development (HUD) has enacted a 90-day foreclosure moratorium on more than 900 Federal Housing Administration (FHA)-insured single-family mortgages in Kerr County.
The moratorium “will provide relief in the wake of this devastation,” HUD Secretary Scott Turner posted on X Tuesday afternoon. “This is an unfathomable tragedy, and HUD will continue to help.”
At least 110 lives have been lost in the Texas floods over the July Fourth weekend. The deadly floods have also left at least 161 people missing, and the majority of the deaths occurred in Kerr County, with 87 fatalities reported there.
The HUD action comes after President Trump issued a major disaster declaration for the region, which continues to suffer from catastrophic flooding, straight-line winds, and severe storms.
“Our hearts break as we witness the catastrophe unfolding in Texas,” Turner said in a release from HUD. “The flash floods have claimed the lives of more than 100 Americans and displaced countless others.”
“HUD will continue to provide resources and support as we pray for the Texas Hill Country community,” he emphasized.
The foreclosure moratorium is effective immediately and applies to both FHA-insured forward mortgages and Home Equity Conversion Mortgages (HECMs) in the declared disaster area. During the 90-day window, mortgage servicers are prohibited from initiating or completing foreclosures on affected properties.
HUD said it has officials working with servicers to assess the extent of the damage and provide relief options to impacted homeowners.
Borrowers in the affected areas are encouraged to contact their mortgage servicer as soon as possible to explore available assistance. Homeowners can also reach out to the FHA Resource Center at 1-800-CALL-FHA (1-800-225-5342), including individuals with communication disabilities via Telecommunications Relay Services (TRS).
Additional help is available through HUD-certified housing counselors, who can guide both homeowners and renters through disaster recovery options. To find an approved counseling agency, visit HUD’s housing counselor search tool or call 1-800-569-4287.
For homeowners whose properties were destroyed or severely damaged, FHA’s Section 203(h) loan program offers 100% financing to rebuild or purchase a new home. Those looking to buy or repair a damaged property may also qualify for assistance through FHA’s Section 203(k) program, which bundles the cost of purchase and renovation into a single loan.
The foreclosure relief is part of the federal government’s broader effort to stabilize and support communities reeling from one of the deadliest natural disasters in recent Texas history.
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