How to Apply for Disaster Relief to Prevent Foreclosure

If you live within an neighborhood that has been declared a federal disaster area and you're having trouble making your mortgage payments, you may be entitled to some help from your lender. Not only could you have foreclosure proceedings delayed for 90 days, but you may also be entitled to have late charges waived. If foreclosure actions began prior to the disaster, you should still follow these simple steps to see if you qualify for some relief.

Difficulty: Easy

Instructions

1. Make sure your home is located in the area declared a federal disaster. You can confirm this with your insurance agent, your lender or by contacting HUD, the Federal Department of Housing and Urban Development.

2. Ensure you qualify for disaster relief by assessing your financial situation. To qualify for disaster relief, your income must have fallen or expenses risen as a result of the disaster. In addition, you must be without other resources that would help you make up delinquent payments, such as an insurance settlement.

3. Contact your lender if you have a conventional or VA mortgage to discuss how to apply for disaster relief in order to delay or prevent foreclosure.

4. Prepare copies of any documentation that may be necessary to prove your case. For example, if you relied on income from someone injured or killed in the disaster, you need to submit medical records or death certificates to prove your loss.

5. Stay in touch with your lender regularly to keep them informed of your situation. They may only be obligated to delay foreclosure for 90 days, but if you work with them and stay in touch, they're much more likely to help you over and above what they're required to do.

Tips & Warnings

• If you're not satisfied with the response you get from your lender, you can call HUD's national hotline at 1-800-569-4287. They have counselors available to help victims of disasters and answer questions regarding foreclosure relief.