If you are in a storm affected area and need mortgage assistance, the FIRST thing you should do is pick up the phone and call the company that receives your mortgage payments.
Start out by saying you need temporary mortgage assistance because of the tornadoes.
You should then be transferred to someone who can help you. Don't be afraid to ask for:
►Temporary relief from monthly mortgage payments, without penalty or late fee, and without being reported to the credit bureaus. Ask for at least three months, more if you think you will need it. ►Lower mortgage payments for some period of time after the "no payment" period. This can be done perhaps through temporary reduction of the interest rate or extending the loan term. Negative amortization might be an option, but it is risky. It comes about if your monthly interest is technically $1,000 (for example) but you pay only $750. Then, the unpaid $250 per month will be added to your principal and your loan balance will get larger. ►Suspension of foreclosure proceedings until after insurance adjusters have viewed your property, paid the claim, you've made repairs and had time to market your property. It might sell more easily after fix-up. ►Halt to foreclosure proceedings even if you did not suffer property damage. Disaster relief money and low cost loans might help your business, or the local economy, and allow you to avoid foreclosure. ►More time to move out if foreclosure has already taken place. Housing is going to be hard to find for the short term. |
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| I hope that you and yours are safe and unharmed after the tornadoes that ravaged our state. If you did suffer a loss to your property, or your income, please read the advice below. If you know someone else who can use this advice, please click the "forward" button below and send this to them.
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Temporary Halt to Foreclosures and Evictions
 Some lenders and servicing companies are calling a temporary halt to foreclosures and evictions in storm-affected areas. HUD, for example, is offering a 90-day forbearance for mortgages and foreclosures. This applies to any loan backed by FHA. Your mortgage statements will not say "FHA" or "HUD" anywhere on them. Read article below to find out if your loan qualifies. Freddie Mac is offering forbearance on mortgage payments for up to one year. I have no news yet about Fannie Mae, but in prior disasters they offered suspension of payments for up to three months, and reduced payments for up to 18 months. The first step is to call the 800 number on your mortgage payment notice and ask to discuss tornado assistance modifications. Read the article at the left for specific things you should request from the lender. If you have a commercial loan known as a "conduit loan" then it was securitized. See the article below for details as to what this means, and what you should do. |
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Who is REALLY my lender?
 Most likely, the "lender" that receives your mortgage checks is just a servicing company. Call the 800 number on your mortgage statement and ask for the name of the entity that actually owns your loan. If it is "U.S. Bank as Trustee" or any other company "as Trustee" then your loan has been securitized. The concept of "who owns my loan" is complicated and largely irrelevant insofar as disaster assistance is concerned, unless the loan was FHA-backed. All of the securitized pools had contracts with servicing companies. Those contracts were signed years ago. The contract spells out what the servicer is, and is not, allowed to do while servicing your loan. I'd be stunned if there were anything in the contract related to the after-affects of a natural disaster. FHA-backed loans are subject to HUD rules and announcements, though. For all others, if you are at least 90 or 120 days past due (it varies depending on the contract) then your loan servicing has been transferred to what is called a "special servicer." Even if your loan is not past due, but you tell the servicer that "default is imminent," then it will usually be transferred to a special servicer. Special servicers almost always have discretion to design creative solutions for short term problems. To see if Fannie Mae owns your loan, click HERE To see if Freddie Mac owns your loan, click HERE Typically, you know if your loan is FHA backed because you applied for an FHA loan when you first made the loan. Once the loan is FHA-insured, it stays that way. If in doubt, the servicing company will definitely tell you if you have an FHA loan. |
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I hope this helps you or your friends and family. I sincerely hope you don't need the advice, but I know many people do. For updates on this topic, please sign up for my blog HERE |
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With heartfelt concern,
Denise Evans
Evans Real Estate Seminars
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