Fannie Mae’s Disaster Relief Options After Hurricane Milton

Hurricane Milton is said to be the worst storm Florida has seen in a century. Of course, the most important priority during this extremely difficult time is to ensure the safety of you and your loved ones. Once the storm has moved on and you continue to pick up the pieces, you may wonder about your mortgage payment. Are you still required to pay it, even if your home was destroyed?

Yes, you should try to continue making payments to keep your mortgage current. However, it cannot be overlooked that Hurricane Milton will financially devastate some households. Fortunately, if your mortgage is owned by Fannie Mae, there are some options available.

Possible Options for Homeowners Under Fannie Mae’s Guidelines

Fannie Mae has many guidelines and options for homeowners who have been impacted by hurricanes and other disasters. These are as follows:

• You may be able to contact your mortgage servicer for assistance. This is not the owner of the loan but rather, the entity that is managing it and collecting payments.
• After a disaster you may qualify for a suspension or reduction of your mortgage payment for up to 12 months if you enter into a forbearance plan with your mortgage servicer. During forbearance, you will not incur late fees and legal proceedings, including foreclosure, are suspended.
• If your mortgage servicer is unable to contact you, they are authorized to offer a forbearance plan for up to 90 days if they believe your home was impacted by the hurricane or other disaster.
• After the forbearance period expires, there are still many options available that can potentially help you resolve any delinquency in mortgage payments without providing a lump sum. These include the Fannie Mae Flex Modification and Disaster Payment Deferral.

It is important to note that the above options are only available for single-family mortgages owned by Fannie Mae.

How to Get the Help You Need

After a hurricane, you will need all of the immediate help you can get. The U.S. Department of Housing and Urban Development (HUD) offers help free of charge. The agency has counselors who are trained experts in disaster recovery and can provide:

• An assessment of your needs and a recovery plan tailored to your situation,
• Assistance asking for financial relief from the Federal Emergency Management Agency (FEMA), insurance, and other sources,
• Ongoing guidance, including online resources, for up to 18 months, and
• Service available in many languages.

It is also recommended that you speak with a Fort Lauderdale foreclosure defense attorney. An attorney can guide you through HUD’s process, and negotiate with your servicer on your behalf to help you obtain the assistance you need at this time.

Other Options Available to Homeowners After a Hurricane

Whether your mortgage is owned by Fannie Mae, bank, or other lender, you may have other options if the above do not apply to you or if you are behind on your payments. These include:

• Reinstatement: If your home loan is owned by Fannie Mac, you may be able to reinstate your mortgage. You can do this by paying a lump sum, regardless of who owns your mortgage, and bring it current so you do not face late fees, a negative impact on your credit report, or even foreclosure. If Fannie Mae owns your mortgage, this is never a requirement but it is always an option.
• Repayment plan: With a repayment plan, you agree to repay a certain amount of the defaulted payments each month. The repayment option is in addition to your current mortgage payments, so it is important to make sure you can afford to pay a bit more before entering into this option. This option is best if you experienced temporary financial hardship but are now financially back on your feet.
• Deferred payments: Deferring mortgage payments is similar to agreeing to a repayment plan, but there is one important difference. When you defer mortgage payments, you agree to pay them in total at the end of the mortgage term. This is different from repayment plans because no payments are added to your current mortgage payments. Deferring payments does not incur any additional interest or penalties. Like repayment plans, deferred payments are a good option for people who can continue to make regular payments.
• Loan modification: Hurricane Milton, and other disasters like it, often result in homeowners experiencing financial hardship for long periods of time. Your home may be severely damaged or entirely destroyed, and your place of employment may have also been affected, meaning you cannot return to make an income. In situations such as these, a loan modification may be most helpful. With a loan modification, you may be able to change any part of your loan, including the interest rate, the length of the loan, the principal amount, and more. This can make your mortgage payments more affordable and help bring you current.

With most of the above options, with the exception of paying a lump sum, you will have to get the approval of your lender or qualify through Fannie Mae. When negotiating with your lender or mortgage servicer, you need legal advice. Negotiating is very intimidating, and both you and your lender or servicer will both try for the most favorable result. An attorney will know how to negotiate successfully so your rights are protected and your mortgage payments are easier for you to manage.

Call Our Foreclosure Defense Attorneys in Fort Lauderdale Today

There is no question that Hurricane Milton will bring devastation to many households in Florida. As you try to repair, rebuild, and get settled once again, thinking about your mortgage may be the last thing you want to do. Unfortunately, ignoring the issue will not make it go away. At Loan Lawyers, our Florida foreclosure defense attorneys can advise you of your legal options, help you determine which one is best for you, and if necessary, negotiate on your behalf. Call us today at (954) 523-4357 or fill out our online form to schedule a free consultation with one of our experienced attorneys.