Troubled homeowners and tenants in Kentucky will be helped by a package of federal disaster assistance announced by the U.S. Housing and Urban Development Department.

The state of Kentucky, especially Jefferson County, has been ravaged by severe storms, winds and flooding.

According to HUD Secretary Shaun Donovan, the package of relief includes foreclosed home prevention assistance for homeowners with FHA-insured loans.

This week, President Obama has issued a natural disaster declaration for Jefferson County, allowing HUD to provide federal assistance to families affected by the calamity.

Under the disaster declaration, the state of Kentucky will have the flexibility to divert existing federal resources, including the HUD Community Development Block Grant and the HOME programs, to disaster relief.

The state can spend millions of dollars allocated to CDBG and HOME for rehabilitating housing and restoring basic services for disaster victims. HUD has started working with state and local government officials to facilitate the release of funds for repairing damaged houses and replacing destroyed homes.

To help distressed homeowners, the HUD announced a 90-day foreclosure moratorium and foreclosure forbearance on home mortgages insured by the Federal Housing Administration.

Under the Section 203(h) program of the HUD, FHA will also provide 100 percent purchase financing, including closing expenses, to borrowers whose FHA-insured homes have been totally destroyed by the storms.

Meanwhile, the HUD Section 203 (k) program allows homeowners whose houses have been destroyed to refinance their loans and obtain loans for repair in a single mortgage loan.

Victims whose single-family houses have been damaged by the storms can obtain financing to repair their homes.

HUD will also provide loan funds to the state of Kentucky and its local governments under the Section 108 loan guarantee program for the repair of damaged and destroyed houses, rehabilitation of public infrastructure and implementation of economic development projects.

In the first week of August, Kentucky was battered by a storm that caused flash flooding in many areas across the state. Many parts of Louisville were underwater as the flooding worsened.

Over the past two years, Kentucky has been battered by natural disasters, including the historic ice storm that paralyzed the state in the last week of January and first week of February, causing widespread damage and cutting water and electric services.

Aside from the HUD, the Federal Emergency Management Agency has also extended help to victims of flooding across the state.

Foreclosed homes HUD is increasing in numbers every day, leaving lenders with more abandoned and vacant properties in their inventories. The increase is particularly felt by government-sponsored enterprises Federal Home Loan Mortgage Corp. or Freddie Mac and Federal National Mortgage Association or Fannie Mae.

According to RealtyTrac’s data and regulatory filings of both companies, Fannie Mae and Freddie Mac are each owner of more than one foreclosed properties in every nine. The data also showed that both companies almost doubled the number of foreclosed homes in their inventories in 2008.

Fannie Mae owns 64,000 single family houses while Freddie Mac is the owner of 29,000 repossessed homes. The total number of foreclosed properties by both Freddie Mac and Fannie Mae is said to be similar in the number of households in Madison, Wisconsin.

Furthermore, both Fannie Mae and Freddie Mac expect that their holdings of foreclosure properties would rise significantly following the lifting of moratoriums.

RealtyTrac Vice President Rick Sharga said that it is expected that Fannie Mae and Freddie Mac will foreclosed on more houses, even if they have only substantial subprime loan holdings, because the projected second attack of foreclosures, driven by unemployment, include loan types that both entities specialize in which are fixed, 30-year prime conforming loans.

In anticipation of the increase in foreclosure activity, Fannie Mae and Freddie Mac have launched programs to help distressed homeowners stay in their homes. Under the programs, troubled homeowners will be allowed to rent their distressed properties at market rates.

Although both programs are similar in their missions, that to help distressed homeowners and to reduce the number of vacant properties, there are slight differences in the lease terms. Freddie Mac will allow previous owners or tenants to stay in their homes. On its part, Fannie Mae will allow owners to become tenants but the foreclosed properties will not be taken out of the market.

According to Fannie Mae, an estimated 1,800 housing units are eligible for its program.

Meanwhile, industry experts said that one consequence of the Fannie Mae and Freddie Mac’s rental programs could be a reduction in the number of properties in foreclosure listings. Still, Sharga believed that home prices would benefit more if lenders released their foreclosed homes HUD in a controlled and regulated manner.

HUD foreclosure properties are often a great alternative to other real estate that is often overpriced. HUD foreclosure properties sell for less. Sometimes this is a little bit less than other homes that are similar and sometimes it is a lot less than homes that are similar. It all depends on a number of variables, from the local housing market to the condition of the home to how long the home has been on the market. Generally, HUD foreclosure properties that are in reasonable condition sell quickly. So you need to be paying attention when looking for affordable HUD foreclosure properties that are in move-in condition.

HUD foreclosure properties are sold in as-is condition. This means that whatever problems or issues the house might have, you inherit them when you buy the house. You are responsible for all the repairs or renovations that might be needed. However, depending on the dollar amount of the needed repairs, you can qualify for different types of government loans that will allow you to finance the cost of the repairs into your mortgage loan. Most states and some cities also have programs that help buyers of HUD foreclosure properties get the funds they need to buy the home and make improvements.

To make sure that you are not getting in over your head with HUD foreclosure properties, you need to have any property you are interested in inspected by a licensed or certified home inspector. A home inspector can tell you if there are structural problems with the house, such as foundation cracks, roofing problems, or major electrical or plumbing issues. All of these things can add up to major dollar amounts for housing repairs, and HUD foreclosure properties with problems such as these should be avoided if you need a place to move into immediately or don’t want to mess with extensive repairs.

On the other hand, some HUD foreclosure properties just need a bit of gently updating and a coat of paint, new flooring or some new appliances. Your home inspector will be able to make suggestions, and you can also finance the costs of these kinds of repairs or qualify for various programs to cover these costs.

Finding HUD foreclosure properties can be done at a foreclosure listings service. They have a database that is full of all the latest foreclosures, including HUD foreclosure properties and other government foreclosures. Nationwide can give you access to all the latest HUD foreclosure properties anywhere in the United States, and you can access their database whenever you want to. Nationwide is your best source for HUD foreclosure properties.

HUD foreclosures are for sale in every state in the United States. They are considered very good deals for many different types of people, from first time home buyers to senior citizens to lower income families. HUD foreclosures also sell for great prices to firefighters, teachers, EMTs, and hurricane evacuees. There are HUD foreclosures that are perfect for just about anyone. HUD foreclosures are often the answer when traditional real estate is too expensive.

One of the best ways to buy HUD foreclosures is by using FHA loans. FHA loans are offered by the Federal Housing Administration, and they come with many advantages that often make them more attractive than other types of mortgage loan financing. FHA has been making loans to homebuyers since 1934. They are part of HUD, so these two government programs work hand in hand to help buyers get affordable housing at excellent prices. These loans offer better rates than other loans, because the federal government insures these loans. This makes it possible for you to get a better rate from various lenders. Overall, FHA loans offer buyers of HUD foreclosures the chance for low down payments, low closing costs and less stringent credit requirements.

FHA has a wide array of loans designed to help buyers of many types. For instance, first time home buyers can get FHA loans on HUD foreclosures that feature down payments as low as 3% of the purchase price of the home, and the option to finance your closing costs into your loan.

Many HUD foreclosures are often fixer-uppers, but FHA has loans for these types of homes, too. These types of FHA loans are perfect for HUD foreclosures that need some repairs or remodeling and updating. You can get the money to fix up the house and finance those costs into your mortgage loan so that you don’t have to furnish the money up front out of your own pocket. FHA also offers a loan that allows you to make your home more energy efficient so that you save on your monthly energy costs.

FHA also has loans for senior citizens and loans for buyers wishing to purchase manufactured homes and mobile homes. While these don’t fall within the guidelines of HUD foreclosures, it proves that FHA can offer a loan that is suited to just about anyone.

Nearly all HUD foreclosures are eligible for one type of FHA loan or another. You can locate listings of foreclosures at Nationwide, and then talk to an FHA lender to find out which loan will be best for you to buy your HUD foreclosure. Buying HUD foreclosures is easy with FHA loans.