Harvey Hits Mortgages: Flood-Stricken Homeowners Less Likely to Pay

Posted To: MND NewsWire

Houstonians in the flood stricken areas are focused on surviving and looking for a place to stay, not finding a way to pay their monthly bills or mortgage payments on homes that may be destroyed. That is why Fannie Mae, Freddie Mac and the Federal Housing Administration, which back the vast majority of mortgages today, have already announced that they will offer forbearance for at least 90 days to borrowers in the Houston area and could, in some cases, extend that up to a year. That means borrowers would not have to make their monthly payments, and no penalty fees would be charged. Interest, however, would still accrue; the offer is a band-aid, not a cure. It is difficult to know what exactly Houston homeowners will find once the floodwaters recede—whether their homes can be dried out...(read more)

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from Mortgage News Daily http://ift.tt/2iJpTXA