Los Angeles wildfires have left many homes damaged or destroyed. Even if the structure is uninhabitable, you’re still responsible for paying your mortgage. Contact your mortgage servicer as soon as possible to learn about assistance or relief options. They may offer forbearance, which temporarily pauses payments, waives late fees, and prevents foreclosure.
To set up payment relief, follow these steps:
* Find out who your mortgage servicer is by searching Fannie Mae’s lookup tool or Freddie Mac’s lookup tool.
* Contact MERS at 888-679-6377 or visit their website for more information on loan details (requires more detailed knowledge).
* Your servicer may proactively offer forbearance if your home was in an affected area, lasting three months. However, do not stop making payments without contacting your servicer. Without a forbearance agreement, you risk foreclosure and credit damage.
If disaster forbearance ends, review the purchase agreement for an “act of God” or force majeure clause to potentially get earnest money refunded. Be wary of scammers after natural disasters, and always verify emails from settlement agents before wiring funds.
If you lost mortgage documents in a disaster, contact your mortgage servicer to request copies. Reach out to your county assessor’s office or deed registry for house deeds, and your insurance provider directly for homeowners insurance policies.
Source: https://www.bankrate.com/mortgages/what-happens-to-mortgage-after-natural-disaster