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Q: What is a Disaster Forbearance Plan?
A: For eligible customers, a Disaster Forbearance Plan temporarily pauses mortgage payments for a set period of time. It is not a waiver or forgiveness of the paused payments. During the forbearance plan period, late fees will not be assessed, and negative credit reporting will be suppressed.
Q: Am I eligible for a Disaster Forbearance Plan?
A: If you’ve been impacted by a recent natural disaster, you may qualify for a forbearance plan to help you recover during this challenging time.
You can apply for a Disaster Forbearance Plan from your online account. If you don’t have one, please create an online account now. (Note: If you can’t apply online or you’re on a smartphone at this time, please contact us at 866-316-2432.)
Q: How long is a Disaster Forbearance Plan?
A: Typically, Disaster Forbearance Plans are approved for an initial period of 1–3 months. Additional extensions may be available, if eligible. We’ll be in touch near the end of your plan to discuss next steps.
Q: Is a Disaster Forbearance Plan right for me?
A: A Disaster Forbearance Plan provides temporary relief from making monthly mortgage payments due to a disaster. We encourage you to speak with your financial advisor or attorney before making any decision regarding this plan or any other mortgage assistance solutions.
Q: What happens at the end of the Disaster Forbearance Plan?
A: At the end of the plan, the payments paused during the Disaster Forbearance Plan will become due, in addition to the regular monthly mortgage payment. However, we are here to help and will contact you before the end of your Disaster Forbearance Plan to discuss potential solutions to bring the account current. Of course, you can also contact us at 866-316-2432 any time before the end of the Disaster Forbearance Plan to review your solutions.
Q: What solutions may be available to me if I cannot pay the full amount of the paused payments at the end of the Disaster Forbearance Plan?
A: If you get to the end of your forbearance period and can’t bring the account current with one lump sum payment, here are some solutions that may be available:
Note: The availability of these solutions is ultimately determined by your unique circumstances and the owner of the mortgage loan.
- Enter a repayment plan – Over a set period of time (usually 3 to 6 months), an additional amount is added to the regular mortgage payment to cover the paused payments.
- Modify the loan – If you qualify, the loan’s terms may be adjusted to provide an affordable payment and cover the amount owed. Usually that means extending the length of the mortgage and changing the interest rate.
- Defer the paused payments – If the owner of the loan offers this solution and you qualify, the paused payments will be placed into a junior lien, payable to the loan’s investor or moved to the end of the loan (as a lump sum final payment), either of which would be due at the earlier of loan payoff, sale or transfer of the property, or maturity.
Q: Will my credit be affected during a Disaster Forbearance Plan?
A: Negative credit reporting will be suppressed from the credit bureaus while on a Disaster Forbearance Plan. While there is no negative credit reporting, credit-scoring companies may consider whether there is an increased credit risk due to the lack of reporting.
Q: How will a Disaster Forbearance Plan affect my mortgage insurance payments?
A: A Disaster Forbearance Plan may extend the number of months you must pay on time to cancel the Private Mortgage Insurance (PMI) or Mortgage Insurance Premium (MIP).
Q: What if I am currently on a modification or other workout plan?
A: Your current review/plan will be cancelled if you enter a Disaster Forbearance Plan. You may reapply at the end of your forbearance period, but we cannot guarantee you’ll be approved.
Q: How will a Disaster Forbearance Plan affect my ability to refinance my loan?
A: While your Disaster Forbearance Plan is active, you are unlikely to qualify for a refinance of the home loan.
Q: Why did I receive a billing statement if I’m on a Disaster Forbearance Plan?
A: We are legally required to send you a billing statement showing the amount due every 30 days. While the statement will still show the contractual amount due, you are not required to make the monthly payment during the term of the Disaster Forbearance Plan. Details concerning the Disaster Forbearance Plan will be referenced under the section labeled “Here’s Some Helpful Information.”
Q: What if I am set up on AutoPay?
A: We will automatically cancel your AutoPay once you are set up on a Disaster Forbearance Plan. If you see that your AutoPay is not cancelled, however, you can cancel it online here.
Once your forbearance period ends, you will need to enroll in AutoPay again. (Note: if you use bill pay through your bank, be sure to pause the payments.)
Q: Why am I receiving documents/letters that indicate I’m delinquent?
A: Since you are not making payments—or making a reduced payment—during a Disaster Forbearance Plan, the loan is technically delinquent. We are legally required to send you certain notices about the delinquent status. However, you are not being charged late fees, and negative credit reporting will be suppressed while on a Disaster Forbearance Plan.
Q: Can I cancel the Disaster Forbearance Plan later if I decide I don’t want it anymore?
A: Yes, you can cancel your Disaster Forbearance Plan at any time. Just remember that when the Disaster Forbearance Plan ends, any payments paused during the forbearance period will be due. You can contact us at 866-316-2432 to cancel your Disaster Forbearance Plan.
Q: What if my financial situation changes?
A: If your financial situation changes during the term of your Disaster Forbearance Plan, please contact us immediately to reassess your situation and discuss potential alternatives.
Q: If I need disaster relief but I’m not eligible, what are my options?
A: Even if you’re not eligible for a Disaster Forbearance Plan, you can always explore other mortgage assistance solutions. (Eligibility is determined by the owner of the loan, not by us).
We’re also providing some additional resources and links below that may be helpful:
- Visit the Get Help section of the Red Cross website or contact them by phone at 1-800-733-2767.
- Visit FEMA’s disaster assistance website or contact the agency by phone at 1-800-621-3362.
Q: What if I still have questions?
A: For more information on Disaster Forbearance Plans or how to request one, please visit our Disaster Relief page. If you have additional questions, we’re here to help anytime.
- Access our chat feature for quick answers: Chat is available on our main website at www.mrcooper.com and in our Help Center.
- Live agents are available during business hours (Monday – Thursday, 7 a.m. – 8 p.m. (CST) and Friday, 7 a.m. – 7 p.m.)
- Our virtual assistant is available 24/7.
- Contact us from your online account: Sign in to reach a live agent or to leave a message in our secure Message Center. For the best chat experience, please sign in first.
- Call us at 866-316-2432: Please use this option if you’re unable to go online at this time.
Whenever you need it, we’ll be here to help.
