Homeowners who are facing the loss of their homes could see some relief after the devastation of hurricane Irma. Residents in parts of Florida may actually be able to stop foreclosure on their homes for as long as a year if they were affected by the storm. Loan servicers have been authorized by Fannie Mae to immediately suspend or reduce mortgage payments for 90 days.
The reduced or suspended mortgage payments must be for single-family dwellings. The mortgages of the homes have to be owned by the government-backed Fannie Mae. While the 90-day relief is already approved, additional relief for up to one year is also available to those who qualify.
This relief will not automatically be given to anyone, however. Those who are in need of the help must contact their loan servicers in order to request the assistance. In some cases, the loans may be deferred and then added to the end of the loan. In other cases, the amount owed would need to be paid in all at once.
While there would still be interest on the skipped payments, there would not be any negative repercussions on the applicant’s credit. Lenders and loan servicers will be reimbursed by Fannie Mae for any costs incurred for this relief. Freddie Mac is offering similar relief for these victims.
Anyone in Florida who is looking for a way to stop foreclosure on his or her home may be eligible for this or similar relief. Some may choose to speak with a bankruptcy lawyer who can explain how to stop foreclosure proceedings for even longer. Even in circumstances where the hurricane had no effect on the home, an attorney can still help the homeowner stop foreclosure on his or her property.
Source: tampabay.com, “Are you eligible for mortgage relief because of Hurricane Irma?“, Sep. 15, 2017