Spring storms in April caused 8 areas of the U.S. to be declared a National Disaster area, and another 9 more so far in May. As a result of tornadoes, severe storms and flooding on April 19th, five counties in Missouri, Butler County, Mississippi County, New Madrid County, Saint Louis County, and Taney County, were declared a National Disaster areas on May 9th, making homeowners eligible for assistance, including possible mortgage payment relief and/or protection from foreclosure.
For example, for those affected borrowers in these areas that have FHA loans, HUD requires it’s lenders to observe an automatic 90 day moratorium on foreclosures on all affected borrowers, as well as other benefits as well. Fannie Mae and Freddie Mac also have policies in place to help provide relief, and protection from foreclosure, to homeowners in national disaster areas that have been impacted by the natural disaster.
I should stress that just because you are located within a county that has been declared a National Disaster Area, you are not going to automatically be entitled to some relief on your mortgage payments or protection from a foreclosure…whether deal with FHA, Fannie Mae or Freddie Mac on your mortgage, it appears you are going to have to prove to them you were impacted by the natural disaster.
To read more about the moratoriums and other relief offered by the various agencies, click the appropriate link below:
Leave a Reply
You must be logged in to post a comment.