Homeowners affected by the
California wildfires may be eligible to defer their mortgage payments for up to 12 months. Mortgage financing giants Fannie Mae and Freddie Mac have issued guidelines for wildfire victims with single-family mortgages.
Victims may be eligible to stop making mortgage payments in three-month intervals, up to 12 months. They also may be eligible to avoid late fees during this temporary payment break, and to not have delinquencies reported to the credit bureaus.
Mortgage servicers have been authorized by Fannie and Freddie to suspend or reduce a homeowner’s mortgage payments immediately for up to 90 days without any contact from the homeowner if the servicer believes the homeowner has been affected by the disaster. For any additional payment forbearance of up to 12 months, homeowners will need to reach out to their lenders.
Fannie Mae and
Freddie Mac provide disaster relief information on their websites.
Also, HUD’s Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and now face the task of rebuilding or buying another home. Borrowers with FHA-approved lenders may be eligible for 100 percent financing, including closing costs.
“Our thoughts are with the families and communities impacted by the devastating California wildfires,” says Carlos Perez, chief credit officer at Fannie Mae. “We urge people to stay safe during this challenging time. If homeowners have been impacted by the fires, we encourage them to call their mortgage servicer for assistance as soon as possible.”
Wildfires were sparked across 335 square miles of Northern California about two weeks ago. President Donald Trump has issued a major disaster declaration for Butte, Lake Mendocino, Napa, Nevada, Orange, Sonoma, and Yuba counties. An estimated 7,000 homes and structures have been destroyed, and 42 people have died.
Source: “HUD Announces Disaster Help for Wildfire Victims,” Napa Valley Register (Oct. 19, 2017); “Fannie Mae Reminds Homeowners and Servicers of Mortgage Assistance Options for Areas Affected by California Wildfires,” Fannie Mae (Oct. 13, 2017); “Freddie Mac Confirms Disaster Relief Policies Amid California Wildfires,” Freddie Mac (Oct. 13, 2017)
