Some mortgage servicing companies are reporting consumers late even though they have a forbearance agreement for Hurricane Irma disaster relief assistance, and state “your forbearance agreement will not go into effect until the following month”, this statement is incorrect.
According to Fannie Mae, “Servicers are authorized to suspend or reduce a homeowner’s mortgage payments immediately for up to 90 days without any contact with the homeowner if the servicer believes the homeowner has been affected by a disaster. Additional payment forbearance of up to 12 months is available in many circumstances”
For Example: A client lost a substantial amount of gross sales from his business during pre-Hurricane Irma and post Hurricane Irma. He contacted his mortgage lender and asked to be placed into a forbearance agreement; the representative said “it will not go into effect until the following month.” The lender also reported my client a two times 30 days late for September and October, even though he made a payment in October 2017. My client contacted me and explained his frustrations; I immediately worked on his file. With my aggressive strategies corresponding with his lender, the late payments that appeared on his credit report were removed within 10 days.
According to Freddie Mac “The Servicer must not assess late charges if the Borrower is on a forbearance plan or paying as agreed on a repayment plan.”
Freddie Mac allows forbearance agreements up to 90 days and a “Disaster Relief Modification” who are less than 31 days late“For Borrowers who were current or less than 31 days delinquent at the time of the Eligible Disaster and who can resume making the contractual monthly payments on the Mortgage, the Servicer must consider the Borrower for a Disaster Relief Modification if a reinstatement or repayment plan is not a viable option.”
A “Flex Modification” by Freddie Mace allows consumers who are past 90 days delinquent an option to keep their mortgage without foreclosing on their home and make payments at a lower rate based on not qualifying for forbearance or a Disaster Relief Modification. “For Borrowers who are 90 days delinquent or greater, but who were current or less than 31 days delinquent at the time of the Eligible Disaster and who, i) have rejected all previous options, including a Disaster Relief Modification, or ii) have not been established contact with the Servicer, the Servicer must evaluate for a streamlined offer for a Flex Modification using Freddie Mac’s disaster related requirements”.
For more information on how I can help you with Hurricane Irma forbearance agreements, business credit restoration and personal credit restoration in Fort Myers, Bonita Springs, Naples FL and Marco Island, FL please fill out the online contact form about your concerns or give us a call at 855.477-9007. Read what our valued clients have to say about First Pro Capital and Credit Consulting Professionals on our Testimonials page.