It is important to consider potential disaster-related scenarios when engaging in large financial decisions, such as obtaining a Federal Housing Administration (FHA) mortgage.
Fortunately, the FHA has measures in place to help borrowers who find themselves in the midst of a catastrophic event. For example, the FHA has set up a Disaster Close Out Program for borrowers who have experienced disaster-related financial hardship. This program allows borrowers to defer payments and, in some cases, even completely waive them. Additionally, the FHA has other options for suspended payments, loans restructuring, and loan modification.
One of the most important things to remember during a natural disaster is that homeowners need to stay in touch with their lender. The lender may be able to offer various resources like the Disaster Close Out Program that can help to mitigate the effects of the event. Additionally, if the borrower’s home becomes uninhabitable due to a disaster, the lender may be able to provide assistance in other forms such as forbearance or loan modification.
In conclusion, it is important to consider potential disaster-related scenarios when making any large financial decisions. The FHA provides numerous resources for those affected by natural disasters in order to help borrowers remain current on their payments and stay in their homes. Keeping in contact with one’s lender is key for understanding what options are available in the event of a disaster. Therefore, having a good relationship with one’s lender is essential for protecting oneself in the face of a natural disaster.
In 2021, natural disasters have dramatically impacted many people and communities, and it is important to consider potential disaster-related scenarios when engaging in large financial decisions, such as obtaining a Federal Housing Administration (FHA) mortgage. Fortunately, the FHA has measures in place to help borrowers who experience disaster-related financial hardship. These include programs such as the Disaster Close Out Program, which allows borrowers to defer payments, or even completely waive them, as well as programs for suspended payments, loan restructuring, and loan modification. In order to make use of these offerings, it is essential for borrowers to maintain a good relationship with their lender. Doing so will enable them to understand what options are available in the event of a disaster, as well as protect them from potential financial damage.
This article was contributed on Jun 28, 2023
