11/04/2024
Important information for those suffering loss in the face of disaster.
"I can't pay my mortgage. What are my options?
If the disaster makes it impossible to make your monthly house payments, ask your servicer for mortgage forbearance. A forbearance "allows you to stop making your payments for an agreed-upon time," a Freddie Mac spokesperson said.
“Ask for a mortgage forbearance if a disaster stops you from making payments.”
In a forbearance agreement, you might make partial payments or stop making payments for a specific time. Generally, a forbearance lasts up to six months and can be extended up to another six months. Interest still accrues during the time you aren't making full monthly payments. But under a forbearance agreement, the lender won't charge late fees or report you to credit bureaus.
The lender will want you to catch up on your missed payments after the forbearance period is over. That might involve paying extra every month for a few years, modifying the loan or reaching some other negotiated agreement.
To talk with a Department of Housing and Urban Development-approved housing counselor before agreeing to forbearance, call 800-569-4287."
What does a natural disaster mean for your mortgage? Here are frequently asked questions and answers for homeowners after disaster strikes.
