Hurricane Sandy Mortgage Relief: Fannie Mae, Freddie Mac and FHA Offer Disaster Aid to Storm Victims

Before you go, we thought you'd like these...
mortgage relief for Hurricane Sandy victims

Government-sponsored mortgage backers Freddie Mac, Fannie Mae and the Federal Housing Administration are offering mortgage relief to some borrowers whose homes were damaged by Hurricane Sandy, the superstorm that has crippled communities across the Northeast.

The relief is available to borrowers whose homes were damaged by Hurricane Sandy and which are located in jurisdictions that President Obama has declared "major disaster areas." The three entities back 90 percent of the mortgages that are originated today.

Only the states of New Jersey and New York have been designated major disaster areas so far. Hurricane Sandy reportedly has left 8.4 million people without power and may cause as much as $20 billion in property damage, The Associated Press reported. About 300,000 properties worth nearly $90 billion were at risk of damage by Sandy's storm surge, AOL Real Estate previously reported.

Freddie Mac said in a statement that it is extending its "full menu of relief policies for borrowers affected by disaster" while a spokesperson for Fannie Mae told AOL Real Estate that lenders that service Fannie Mae-backed mortgages are authorized to grant up to 90 days forbearance to borrowers whose homes were damaged by Hurricane Sandy. That means that they won't be penalized if they miss a few mortgage payments.

Freddie Mac said in its statement that it would also:
• suspend "foreclosure and eviction proceedings for up to 12 months."
• waive "assessments of penalties or late fees against borrowers with disaster-damaged homes."
• not "report forbearance or delinquencies caused by the disaster to the nation's credit bureaus."

The FHA is also granting immediate foreclosure relief and forbearance to borrowers with FHA-insured mortgages "whose properties were damaged or destroyed by virtue of the hurricane," Brian Sullivan, spokesperson of the Department of Housing and Urban Development, told AOL Real Estate. HUD oversees the FHA.

The FHA disaster relief includes:
• implementing a 90-day moratorium on foreclosures.
• encouraging banks that service FHA-insured mortgages to provide forms of mortgage relief, including forbearance.
• offering "disaster mortgage insurance," which allows disaster victims to obtain a 100-percent-financed mortgage.

The aid offered by the agencies is standard disaster relief provided under their policy guidelines, and has not been specially enhanced in response to Hurricane Sandy. Lenders that service mortgages backed by the agencies are mostly responsible for implementing the relief and exercise some discretion over doing so.

To learn if you qualify for disaster relief on a mortgage, call your lender (the company you send your mortgage payments to). You can also call 1-800-FREDDIE, 1-800-7FANNIE, or the FHA at 202-708-1112.

41 PHOTOS
Hurricane Sandy's Wrath, and the Aftermath
See Gallery
Hurricane Sandy Mortgage Relief: Fannie Mae, Freddie Mac and FHA Offer Disaster Aid to Storm Victims

A National Guard Humvee travels through high water Tuesday during a patrol to check the effects of Hurricane Sandy in Ocean City, Md.

This photo provided by Philadelphia's WPVI-TV shows the Inlet section of Atlantic City, N.J., as Hurricane Sandy makes it approach on Monday.

A woman is lifted into a National Guard vehicle after leaving her flooded home Tuesday at the Metropolitan Trailer Park in Moonachie, N.J.

Boats are left piled on each other in Brick, N.J., on Tuesday after Hurricane Sandy struck.

The Kunta Kinte-Alex Haley Memorial sits in floodwaters in downtown Annapolis, Md., on Tuesday, after the superstorm and remnants of Hurricane Sandy passed through that city.

Ocean City municipal employees Michael Brown, left, and Enos Jones fill a truck with debris as they clean the boardwalk Tuesday after the effects of Hurricane Sandy in Ocean City, Md.

A woman rides her bicycle through a flooded street in the Red Hook section of Brooklyn on Tuesday after Hurricane Sandy caused extensive damage in New York City.

This photo taken Tuesday in New York City shows what appear to be transformers exploding after much of lower Manhattan lost power during Hurricane Sandy. Much of New York was plunged into darkness Monday by a superstorm that overflowed the city's historic waterfront, flooded the financial district and subway tunnels and cut power to nearly a million people.

One World Trade Center and large portions of lower Manhattan and Hoboken, N.J., are seen without power from Jersey City, N.J., on Tuesday.

In New York City, an uprooted tree blocks 7th street near Avenue D in the East Village as a result of high winds from Hurricane Sandy on Monday.

Sailboats rock in choppy water at a dock along the New York's Hudson River Greenway during the storm on Monday.

The facade of a four-story building on New York's 14th Street and 8th Avenue collapsed onto the sidewalk on Monday.

Firefighters respond Monday at the scene of the building collapse on 14th Street and 8th Avenue in New York.

John Constantine makes his way out of his house after winds from Hurricane Sandy toppled a tree  in Andover, Mass., on Monday.

Johnny Jones watches the Indian River rise in Sussex, Del., from the longtime family home  where he and his brother, David, have spent their entire lives.

A row of houses stands in floodwaters at Grassy Sound in North Wildwood, N.J., as Hurricane Sandy pounds the East Coast on Monday.

Michael Wirtz, of Wilmington, Del., braves floodwaters and high winds that arrive with Hurricane Sandy along North Michigan Avenue in Atlantic City, N.J., on Monday.

A fallen tree rests on top of a car in the Cliffwood Beach section of Aberdeen, N.J., on Monday.

A few dozen people take refuge from Hurricane Sandy at a Red Cross shelter on Monday in Deer Park, N.Y.

A Rehoboth Beach, Del., resident watches the waves crash in Monday's storm.

Curious onlookers get a closer glimpse at rising water from the Hudson River as it overtakes a bank drive-through in Edgewater, N.J., on Monday.

Water floods Bayville Avenue in Bayville, N.Y., on Monday as a result of Hurricane Sandy.

Jake Wilkerson, 20, and Kaityln Baker, 21, both of Annapolis, Md., struggle with their umbrellas as Hurricane Sandy approaches that city on Monday.

A surfer rides a wave Monday at the Virginia Beach Fishing Pier at 15th Street in Virginia Beach, Va.

People wade and paddle down a flooded street Monday as Hurricane Sandy approaches in Lindenhurst, N.Y.

Water from the Hudson River surrounds a hotel in Edgewater, N.J., on Monday as Hurricane Sandy lashes the East Coast.

A construction crane atop a luxury high-rise dangles precariously over New York streets after collapsing in high winds from Hurricane Sandy.

A New York City firefighter and police officer look at the collapsed construction crane dangling precariously atop the luxury high-rise.

A worker clears a tree dropped by the high winds prior to landfall of Hurricane Sandy in Shrewsbury, Mass., on Monday.

A warning sign displays a directive near downtown Philadelphia ahead of Hurricane Sandy's landfall on Monday.

Lower Manhattan goes dark during hurricane Sandy on Monday, as seen from Brooklyn, N.Y.

A storm surge hits a small tree as winds from Hurricane Sandy reach Seaside Park in Bridgeport, Conn., on Monday.

As Hurricane Sandy bears down on the East Coast, Ron Croker, left, and Tim Wood, wheel a personal watercraft to a safer location in Ocean City, Md.

Trees bend in the wind and driving rain in downtown Philadelphia ahead of Hurricane Sandy's landfall on Monday.

A house is inundated by flood water as Hurricane Sandy approaches on Monday in Center Moriches, N.Y.

A couple posing for a picture get hit by a wave in Hampton, N.H., on Monday.

The storm floods streets on Monday in Hampton, N.H.

Debris and water close Virginia Dare Trail after wind and rain from Hurricane Sandy left many roads flooded and impassable in Kitty Hawk, N.C., on Monday.

A car is submerged in the Dumbo section of the Brooklyn borough of New York, as the East River overflows during Hurricane Sandy on Monday.

In this Oct. 26, 2012 photo, residents walk past tree branches and power lines felled by Hurricane Sandy in Santiago de Cuba.

of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

See also:
Should You Buy a Standby Generator for Your Home?
How To Protect Your Home From Damage in a 'Perfect Storm'

Homeowners Insurance 101: What You Need to Know

More on AOL Real Estate:
Find out how to
calculate mortgage payments.
Find
homes for sale in your area.
Find
foreclosures in your area.
See celebrity real estate.

Follow us on Twitter at @AOLRealEstate or connect with AOL Real Estate on Facebook.



Read Full Story

Find a Home

Buy
Rent
Value
Powered by Zillow

People are Reading