FHA is offering new options to victims of hurricanes Harvey, Irma and Maria as well as California wildfires and subsequent flooding and mudslides to avoid foreclosures. Eligible disaster victims in Texas, Louisiana, Georgia, Florida, South Carolina, California, Puerto Rico and the U.S. Virgin Islands may get FHA foreclosure relief, which would allow them to remain in their homes and, at the same time, reduce losses to the mortgage insurance fund. FHA has instructed servicers to reach out to the victims with the new option, “Disaster Standalone Partial Claim.” The new option allows an interest-free second loan to cover up to 12 months of missed mortgage payments. The loan is payable only when the borrower sells the home or refinances the mortgage. The expanded loss mitigation will also streamline income documentation and other requirements to expedite relief to struggling homeowners while they are ...