Disaster Relief Mortgage Loan Modification

(Photo by E.L. Conley)

The following information is from Fannie Mae regarding loan modifications for your home mortgage due to situations such as hurricane.

What help is available?

Following a disaster, homeowners with a Fannie Mae loan are offered forbearance plans for up to 12 months, to help during the recovery.

Once the forbearance plans expire, homeowners must resume making their monthly payments or work with their mortgage company to find the right long-term solution. Options following the end of the forbearance period include:

  • Reinstatement (You’d pay the total past due amount you owe, in a single lump sum payment, and then resume your regular monthly payments);
  • Repayment Plan;
  • Extend Modification for Disaster Relief;
  • Cap and Extend Modification for Disaster Relief; or
  • Flex Modification

If you’re able to resume your regular monthly payments at the end of your forbearance period and can pay any unpaid amounts (e.g., payments, and escrow for taxes and insurance) that accrued during the forbearance, a reinstatement or repayment plan may be right for you. Talk with your mortgage company to determine the best option.

Homeowners with financial situations that require permanent assistance, could benefit from a loan modification.

How do the modifications work?

The benefits and eligibility requirements vary for each modification.* Compare them to determine which might help your personal situation.

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Extend Modification for Disaster Relief

Cap and Extend Modification for Disaster Relief

Flex Modification

*The modifications are for post-disaster forbearance situations where the homeowner’s property or place of employment was impacted by a disaster in a Federal Emergency Management Agency (FEMA) declared area that’s eligible for individual assistance.

If you are not sure if your home mortgage is owned by Fannie Mae, use this link to find out.

Attorney Alex Hernandez

Representing clients in the areas of Chapter 7 Bankruptcy, Family Law/Divorce, and car and motorcycle accidents for 20 years. (904) 712-5565 or (305)-688-LAWS (5297). *Se Habla Español

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