California wildfires are now raging nearly across the entire state. The damages have totalled over $11 Billion Residential damages alone and now Freddie Mac and Fannie Mae are extending a hand, in the form of forbearance to many victims in the state.
According to HousingWire.com “Fannie Mae and Freddie Mac sent out a reminder to servicers, saying homeowners impacted by the fires are eligible to stop making mortgage payments for up to 12 months. During this time period, they will not incur late fees or have delinquencies reported to the credit bureaus.”
Fannie Mae servicers have additional options to help out their California borrowers – without suspending payments completely for the year. There are options to do the following:
- Suspend or Reduce the Homeowner’s mortgage payments for up to 90 days without any contact with the borrower if the servicer feels they have been affected.
- Suspend foreclosures and other legal proceedings if the servicer believes the homeowner has been impacted.
The big businesses also send their best wishes and thoughts to families and communities impacted so harshly by the devastation that has occurred and Fannie Mae has plans to work with their many servicing partners to ensure mortgage assistance is available during this challenging time.
Disaster relief options from Freddie Mac are also available for homes within the Federal Emergency Management Agency-declared disaster areas – even in areas where FEMA assistance is not available and Freddie Mac is urging their servicers to work directly with borrowers to provide relief.
Freddie Mac has also taken into account the borrowers who work in areas affected, as businesses have been very negatively affected as well and suggests that its servicers do the same.
The Carr fire still rages Northern California and the damage continues to increase. The Carr fire has surpassed its third week, continuing to wreak havoc on the area and this single fire has burned up over 170,000 acres so far. The worst part is that the monetary and emotional damage will continue to grow until the fires are contained.
The economic impacts on the local real estate market will be ongoing for years, and maybe even decades, as so many will have to rebuild not only their homes, but also their lives.