Homeowners affected by the Los Angeles wildfires or any disaster are advised to contact their mortgage loan servicer for potential relief options such as monthly payment forbearance. Homes with mortgages owned by Fannie Mae or Freddie Mac may be eligible for up to 12 months of forbearance without late fees or penalties. Freddie Mac also extends assistance to homeowners facing financial hardship due to disruptions in their employment. Various repayment options are available to make up missed payments.
Different financial institutions like Chase Bank, Bank of America, and Wells Fargo offer forbearance programs for their customers, with varying terms and conditions. Borrowers with VA mortgages are encouraged to seek forbearance options provided by the US Department of Veterans Affairs. A new bill introduced in the California legislature, AB238, called the Mortgage Deferment Act, aims to offer payment delays for up to 360 days to borrowers affected by disasters like wildfires.
Current mortgage rates are higher, with the 30-year fixed rate at 7.04%. The Mortgage Bankers Association reports a 33.3% increase in mortgage applications compared to the previous week. Various fixed-rate mortgage options are available for well-qualified borrowers. Jeff Lazerson, president of Mortgage Grader, can be contacted for more information on mortgage programs.
Source
Photo credit www.dailynews.com
