Storm-area homeowners can delay mortgage payments
WASHINGTON – Oct. 11, 2018 – Fannie Mae issued a reminder to homeowners in areas affected by natural disasters: Under Fannie Mae's guidelines for single-family mortgages, they can request a delay in their monthly mortgage payments. Those rules apply for some homeowners in areas affected by Hurricane Michael.
Under Fannie Mae's guidelines for single-family mortgages:
- Homeowners impacted by Hurricane Michael are eligible to stop making mortgage payments for up to 12 months, during which time they A) will not incur late fees during the temporary payment break, and B) will not have delinquencies reported to credit bureaus.
- Mortgage servicers are authorized 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 a disaster. Payment forbearance of up to 12 months is also available in many circumstances.
- Servicers must suspend foreclosure and other legal proceedings if the servicer believes the homeowner has been impacted by a disaster.
"Fannie Mae and our lending and servicing partners are focused on ensuring assistance is offered to individuals and families in need," says Carlos Perez, senior vice president and chief credit officer at Fannie Mae. "We also are focused on working with our multifamily lenders and borrowers to determine appropriate actions to assist renters impacted by the storm."
Perez encourages homeowners affected by the storm "to contact their mortgage servicer for assistance as soon as possible."
Homeowners can reach out to Fannie Mae directly by calling (800) 232-6643). More information is also posted Fannie Mae's "Know Your Options" website.
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