Mortgage help for natural disaster victims
OPTIONS EXIST FOR HOMEOWNERS WITH FHA-INSURED MORTGAGES
Regardless of flood, wind or fire, when disaster strikes the federal government steps in to help. But homeowners may not realize that the federal government could already have a hand in their mortgage.
Specifically, Fannie Mae and Freddie Mac, two government-backed agencies, buy a big portion of mortgages from lending firms. You can find out if yours is one by visiting https://www. knowyouroptions.com/ loanlookup or https:// ww3.freddiemac.com/ loanlookup/.
Some borrowers who make low down payments have federal FHA-insured mortgages. With a vested interest in the financial health of many owners holding mortgages, the government has disaster relief programs aimed strictly at them.
Here, Steven Marshall of Homebridge Financial Services Inc. outlines steps for victims to investigate mortgage-related recovery:
• Call your homeowner insurer — who may have also sold you flood insurance — to investigate your damage and claim.
• Contact local permitting authorities. “You have to find out what the rebuilding requirements are,” Marshall says. Jonathan Kanarek of BuildFax notes that after Hurricane Harvey hit Texas in 2017, Houston authorities expedited assessments and permitting. Other locales may imitate that effort.
• Call the firm sending your mortgage bills, known as the “mortgage servicer.” If your loan is owned by Fannie or Freddie, they may allow you to suspend mortgage payments for a year. Servicers may automatically suspend billing for 90 days for borrowers in the area. If you have an FHA loan and can’t reach your servicer, call 877-622-8525.
• Consider the FHA 203H program: It offers, for one year after a disaster, no-down-payment loans to purchase or rebuild to residents in areas declared disaster zones by the president. An owner might pay off his mortgage from insurance proceeds, explains Marshall, using all his savings to pay the insurance deductible.
“That’s why the 203H helps,” says Marshall. “You won’t need a down payment.”
Anyone — renters or owners — who lived in a disaster zone can also use the FHA 203H to buy a new home, even outside the area.