Texans struggling to find safety in the wake of Hurricane Harvey may not be able to keep up with monthly bills and mortgage payments, CNBC reports.
In anticipation of the disaster’s conditions, Fannie Mae, Freddie Mac, and the Federal Housing Administration have announced they will offer forbearance for at least 90 days to borrowers in the Houston area. In some cases, these could be extended for up to a year.
Under this allowance, borrowers in affected areas will not have to make payments for the given period, and no penalties will be charged. Interest, though, will continue to accrue.
If the impact on homes is similar [to Hurricane Katrina], more than 75,000 Houston borrowers could become unable to make a mortgage payment within the next two months and 45,000 could become seriously delinquent on their loans in the next four months, according to Black Knight Financial Services.