Homeowners can pause or reduce payments for up to a year
Fannie Mae and Freddie Mac are reminding homeowners affected by Hurricane Milton of the mortgage relief options available to help them during this challenging time.
The government-backed agencies are encouraging homeowners to contact their mortgage servicers for assistance, especially as many families are still recovering from the impacts of Hurricane Helene.
Cyndi Danko, chief credit officer of Fannie Mae Single-Family, emphasized the importance of contacting servicers early.
“Once recovery efforts begin, we encourage homeowners experiencing hardship because of the storm(s) to contact their mortgage servicer about payment relief options as soon as possible,” Danko said. “Homeowners and renters alike can learn more about disaster relief resources, including personalized support, by contacting Fannie Mae’s free disaster recovery counseling services.”
Homeowners whose properties have been damaged by Hurricane Milton may be eligible for various relief options, including forbearance plans that allow for reduced or suspended mortgage payments for up to 12 months.
During this period, homeowners won’t incur late fees, and foreclosure proceedings will be paused. In situations where a mortgage servicer cannot contact the homeowner but believes the property has been affected, a 90-day forbearance plan can be offered. Homeowners already on COVID-19-related forbearance plans are also eligible for disaster assistance.
Fannie Mae has set up a disaster recovery counseling hotline at 855-HERE2HELP (855-437-3243) to offer free services. These services, provided by HUD-approved counselors, can help homeowners navigate financial relief from FEMA, insurance companies, and other resources, with guidance provided for up to 18 months.
Freddie Mac also offers a forbearance program that provides mortgage relief for up to 12 months without late fees or penalties for those impacted by Hurricane Milton.
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Once homeowners are back on their feet, Freddie Mac offers multiple options to help them catch up on missed payments. Options include:
- Reinstatement: A lump sum payment, if possible, to immediately bring the mortgage current (not required).
- Repayment plan: Allows homeowners to pay more each month to catch up.
- Payment deferral: Missed payments are added to the end of the mortgage term without penalties or extra interest.
- Loan modification: For homeowners facing long-term financial hardship, allowing them to reduce their monthly payments.
- Freddie Mac also provides guidance to renters in apartment buildings to help them prepare for and recover from natural disasters.
“We are reminding homeowners and their families affected by Hurricane Milton, just as we did recently with Hurricane Helene, that our mortgage relief options are available to help support their recovery,” Mike Reynolds, Freddie Mac Single-Family head of servicing, said in a media release. “When the time is right, we encourage homeowners to contact their mortgage servicer to learn about relief options. Freddie Mac and our partners stand ready to provide immediate assistance.”
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