Mayor Derrick Freeman took to Facebook to give an update on disaster recovery for the city of Port Arthur.

“This week we were honored to have a visit from the GLO (Texas General Land Office) Commissioner George P. Bush and HUD (U.S. Housing and Urban Development) Director Beth Van Duyne in Port Arthur to update us on progress in the disaster recovery,” Freeman wrote. “The most exciting news is that HUD has announced mortgage relief to FHA (Federal Housing Administration) insured homeowners who live in areas affected by Harvey.”

Freeman wrote FHA is introducing a new “Disaster Standalone Partial Claim” option to help struggling borrowers to resume their pre-disaster mortgage payments without payment shock.

This new option covers up to 12-months of missed mortgage payments via an interest-free second loan on the mortgage, payable only when the borrower sells the home or refinances their mortgage. In addition, this new option requires no trial period or balloon payment and allows borrowers to keep their existing low interest rate and loan term as well as their existing monthly mortgage payment.

FHA’s new partial claim option is available to certain borrowers who live and work in Presidentially Declared Major Disaster Areas and who became delinquent on their mortgage payments because of last year’s disasters, and whose initial mortgage forbearance periods are ending.

Other requirements include:

• Borrowers were current on their mortgage payments at the date of the disaster
• Borrower’s income is equal to or more than their pre-disaster income
• Property is owner-occupied.

“So basically if you have a mortgage most likely it is backed by the FHA,” Freeman wrote. “You can request not to pay your mortgage for up to 12 months. The missed payments will be added to your mortgage at the end. There is no interest rate increase or increase in your monthly payment. Check with your lender to get the paperwork.”