HUD Rolls Out Emergency Foreclosure Relief for Flood-Ravaged Texas Communities

In the wake of devastating storms and catastrophic flooding that swept through Kerr County, Texas, starting July 2, 2025, the U.S. Department of Housing and Urban Development (HUD) has stepped in to offer crucial support for struggling homeowners. Secretary Scott Turner announced a 90-day foreclosure moratorium on all FHA-insured single-family mortgages in the affected areas, following the official Major Disaster Declaration from the President.

The relief measure is designed to give families time to regroup and recover as the region deals with the widespread destruction left behind by straight-line winds and relentless flash floods. With more than 100 lives tragically lost and countless residents displaced, this moratorium aims to ease financial pressure for homeowners already facing the trauma of losing property, stability, and far too often loved ones.

A Lifeline for Kerr County Homeowners

Kerr County, located in the Texas Hill Country, is now classified as a Presidentially Declared Major Disaster Area (PDMDA), with over 900 homes under FHA-insured mortgages. The temporary foreclosure pause halts all initiation and completion of foreclosure proceedings on both forward and reverse (Home Equity Conversion) FHA loans in the county for a 90-day period, starting from the date of the disaster declaration.

“This is about standing with our fellow Americans when they need us most,” said HUD Secretary Scott Turner. “As Texas reels from historic flooding, HUD will continue to provide support, guidance, and financial tools to help these communities rebuild because no one should lose their home while they’re trying to survive a disaster.”

Guidance for Impacted Homeowners

Homeowners affected by the floods are encouraged to reach out to their mortgage servicers immediately if they are unable to make monthly payments. HUD also recommends contacting the FHA Resource Center at 1-800-CALL-FHA (1-800-225-5342) for information on available relief options. The hotline offers services for individuals who are deaf, hard of hearing, or have speech and communication disabilities.

Beyond foreclosure relief, HUD and the FHA are connecting affected residents to a range of recovery resources:

• Housing Counseling Support: HUD-approved housing counselors are available to assist both homeowners and renters who need temporary housing, disaster assistance, or help understanding their recovery options. To locate a nearby HUD-certified counselor, individuals can use HUD’s online locator or call 1-800-569-4287.
• FHA 203(h) Disaster Loans: For residents whose homes were destroyed or severely damaged, the Section 203(h) loan program offers 100% financing to rebuild or purchase a new primary residence. This assistance is accessible through FHA-approved lenders and is designed for disaster survivors needing a fresh start.
• FHA 203(k) Renovation Loans: Homeowners looking to repair or rehabilitate their damaged properties or buy a home in need of repairs may qualify for financing under the 203(k) loan program. This option allows borrowers to combine purchase or refinance costs with renovation expenses into one mortgage.

HUD’s Role in Federal Disaster Response

This initiative reinforces HUD’s role in supporting Americans during times of crisis. It also complements President Trump’s federal disaster declaration for the State of Texas, unlocking additional federal aid and long-term recovery support.

While emergency declarations and federal funding play a major role in immediate disaster relief, mortgage forbearance and foreclosure protections can be the difference between temporary displacement and permanent loss for many families.

For residents of Kerr County and the greater Hill Country region, the days ahead will be difficult. But with coordinated support from federal agencies, mortgage servicers, and community housing partners, recovery is possible.

As HUD continues its on-the-ground collaboration with lenders and local authorities to assess damage and identify needs, Secretary Turner emphasized that “no family should be forced into foreclosure while picking up the pieces after a disaster.” For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.