Chinese Drywall Update

This is good news for Florida especially South Florida.  HUD has directed lenders to extend temporary assistance to certain homeowners affected by Chinese drywall.  “The HUD effort affects only borrowers whose mortgages are insured by the Federal Housing Administration and who may qualify for help under an existing mortgage-forbearance program intended to prevent foreclosures.”

Hopefully others will follow FHA.  Unfortunately the average cost of replacing the drywall is $80,000 to $100,000 and the only help these homeowners will probably get is “suspending or reducing mortgage payments long enough to allow a borrower to catch up on missed payments.”