Fannie Mae said Tuesday that those affected by floods across the Midwest may have access to mortgage assistance.
Servicers can grant an initial period of up to six months' forbearance to borrowers affected by the natural disaster per Fannie Mae's single-family mortgage guidelines, the government-sponsored enterprise reminded in a news release.
Fannie Mae can also approve additional forbearance of up to six months if homeowners were current or less than 90 days delinquent at the time of the flooding.
Additionally, Fannie Mae's guidelines let servicers delay foreclosure sales and other proceedings in affected areas. Servicers may also temporarily suspend or reduce mortgage payments for up to 90 days if the floods affected the property's habitability or value adversely or if they rendered the owner unable to make payments.
Such relief can be available even if the servicer cannot contact the customer in question.
"We understand the disruption that a natural disaster such as the flooding in the Midwest can have on people's lives," said Fannie Mae vice president of servicing Malloy Evans in a Jan. 5 news release. "Fannie Mae servicers are expected to offer the appropriate assistance to families affected by these floods. Our thoughts are with all of those who have been impacted."
