In the midst of a natural disaster paying your mortgage is not top of mind. Those who are fighting to survive in flood stricken areas in the aftermath of Hurricane Harvey are more concerned with knowing if their homes will be habitable once flood waters recede or if their homes will be total losses.
And now residents in Florida are focused on surviving and looking for a place to stay, not giving a moment’s thought to paying their monthly mortgage or other bills.
Fannie Mae, Freddie Mac and the Federal Housing Administration, announced that they will offer forbearance for at least 90 days to borrowers. Specifically in the Houston some homeowners could receive, an extension of up to a year. (It’s still too soon to forecast the outcome of Hurricane Irma in Florida.)
The assistance would mean that borrowers can pause their monthly payments, and will not be charged a penalty fee; interest would still accrue.
Freddie Mac announced on Tuesday that it was suspending evictions and foreclosures on homes with mortgages that it owns or guarantees in disaster areas impacted by Hurricane Harvey.
“We’re committed to ensuring that homeowners receive the mortgage assistance they need to overcome the devastating tragedy of Hurricane Harvey,” Yvette Gilmore, Freddie Mac’s vice president of single-family servicer performance management, said in a statement, “Once they’re out of harm’s way, homeowners should contact their servicers—the company to which they send their monthly mortgage payments. They may be eligible for forbearance on mortgage payments for up to one year if their mortgage is owned or guaranteed by Freddie Mac.”
Fannie Mae is also reminding homeowners of the options it provides saying, homeowners who suffer damage or displacement are encouraged to contact their servicers as soon as possible, or to call Fannie Mae directly at 1-800-2FANNIE. Servicers are authorized to suspend or reduce monthly payments for up to 90 days, with additional payment forbearance of up to 12 months in some circumstances. Servicers can provide this assistance even if they do not hear from homeowners if they suspect they have been affected.
Carlos Perez, Senior Vice President and Chief Credit Officer at Fannie Mae says, “Fannie Mae and our lending and servicing partners are focused on ensuring assistance is offered to individuals and families in need. We are monitoring the path of the storm and have provided our Single-Family lenders and servicers and our Multifamily DUS® lenders and borrowers with the tools and flexibility to assist impacted borrowers, renters, and communities.”
The FHA is also doing its part to assist. U.S. Housing and Urban Development Secretary, Ben Carson, announced “HUD will speed federal disaster assistance to the State of Texas and provide support to homeowners and low-income renters forced from their homes due to Hurricane Harvey.”
The President’s declaration allows HUD to offer mortgage/foreclosure relief and other assistance to certain families living in impacted counties.
HUD is:
Information provided in part by HUD.gov, FannieMae.com and FreddieMac.com
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