Mortgage Relief for Oklahoma Tornado Victims
Our thoughts go out to all those affected by the devastating tornado that swept through Oklahoma earlier this week. Disasters such as these are tragic for all affected, including distressed homeowners who were already facing financial and mortgage challenges.
Relief is available, however. Fannie Mae and Freddie Mac released statements reminding borrowers of the options available to distressed homeowners who were affected by the storm. Under the disaster relief policies of both organizations, mortgage servicers can waive late fees and grant a 12-month forbearance period for homeowners whose properties were damaged or destroyed. In some cases, servicers may also work with a borrower to determine whether additional assistance via a loan modification is necessary given the homeowner’s particular situation.
Additionally, the Department of Housing and Urban Development (HUD) announced that affected homeowners in Cleveland, Lincoln, McClain, Oklahoma, and Pottawatomie counties with mortgages backed by the Federal Housing Administration (FHA) will be granted a 90-day forbearance period on all foreclosure proceedings.
Borrowers are encouraged to contact their mortgage servicer – the company that they send their monthly mortgage payment to – in order to receive assistance and determine the options available to them. Victims of the Oklahoma tornado who believe they are at risk of foreclosure can also call our HOPE Hotline at 888-995-HOPE (4673) to speak with a professionally trained counselor about their unique mortgage situation.