The wildfires in Los Angeles have destroyed numerous residential homes, decimating entire neighborhoods. Even if your home is left uninhabitable or completely demolished due to a natural disaster, you are still obligated to pay your mortgage. After ensuring the safety of yourself and your family, follow these steps to arrange for payment relief.
Mortgage Assistance After a Natural Disaster
Whether your home was severely damaged or lost in the wildfires in Southern California, it is crucial to contact your mortgage servicer promptly to inquire about available assistance or relief options. Your servicer is the company to which you make your monthly payments and may differ from the initial lender you obtained the loan from.
If you are unsure about your servicer, you can utilize tools such as Fannie Mae’s lookup tool or Freddie Mac’s lookup tool. Alternatively, contact Mortgage Electronic Registration Systems (MERS) at 888-679-6377 or visit their website. Keep in mind that this method requires specific knowledge of your loan, which may be challenging to access if your loan documents were destroyed in the disaster.
In situations like natural disasters, servicers typically offer forbearance, a temporary suspension of payments during which you are exempt from late fees or foreclosure risks for up to 12 months. Some servicers may automatically extend forbearance if your home was situated in an affected area, usually for three months.
Regardless of the circumstances, never cease making payments without informing your servicer. Failure to establish a forbearance agreement could harm your credit score, result in late fees, and even lead to foreclosure.
What Happens After the Forbearance Period?
Upon the conclusion of the forbearance period, your servicer may require you to repay the missed payments in a lump sum, through a payment plan, or another arrangement. You might also qualify for a loan modification to make your mortgage more manageable in the future. Ensure you comprehend the repayment terms and options applicable to your situation.
Additional Considerations for Home Buyers or Sellers
If you were in the process of buying or selling a home, review your purchase agreement for clauses such as “act of God” or force majeure. Depending on the terms, you might be eligible for a refund of earnest money if you were the buyer. Stay in touch with your real estate agent, loan officer, or settlement agent regarding any closing delays or cancellations due to property damage or unforeseen circumstances.
Be cautious of scammers who may exploit these situations post-disaster. Verify the legitimacy of any communication, especially regarding financial transactions, by contacting the relevant parties directly.
Recovering Lost Documents
If you lost crucial mortgage documents during the disaster and lack digital copies, contact your mortgage servicer to request duplicates. For documents like your house deed, reach out to the county assessor’s office or deed registry. Contact your insurance provider directly for copies of homeowners insurance policies.
Additional Resources for Homeowners Affected by Natural Disasters:
– DisasterAssistance.gov
– Fannie Mae disaster resources
Bankrate offers valuable resources for homeowners affected by the recent wildfires in Los Angeles. These resources are specifically tailored to assist those who have been forced to evacuate their homes due to this natural disaster.
