Can a foreclosure be delayed due to a hurricane? The answer is yes it can be. There is any number of reasons why that can happen. Number one is if you have a hearing or a foreclosure sale that is scheduled and the courthouse shuts down, well, guess what? They are not going to have a hearing, so your foreclosure can get delayed because of a hurricane and the court system shutting down. I’ve also seen if you don’t have court hearing and you have a pending foreclosure, an action that’s pending, sometimes the … and it’s a federally insured or an FHA BA type loan, they may delay, put a moratorium for a couple of months to determine whether or not you’re in a disaster area and the status of the property. That happened in a recent hurricane I saw where they put on hold I think it was like for two or three months any foreclosure proceedings. They stayed them while they evaluated whether or not the property had suffered any loss or you were unable to take care of the foreclosure or reinstate the foreclosure.
A hurricane can delay a foreclosure action particularly if there is any damage to the collateral that might be a factor, although the bank or whoever is … if their named, an additional insured would be entitled to the insurance proceeds if they completed the foreclosure. If you have any questions about foreclosure, give me a call at 727-847-2288.