Disaster Relief FAQs
Frequently Asked Questions About Disaster Relief
Yes. If you’re experiencing a financial hardship due to a natural disaster, we’re here to help. You may be eligible for a Disaster Forbearance Plan.
You can request assistance online. You’ll be guided through the process step-by-step and will answer the same questions that our agents would cover with you on a phone call.
For eligible clients, 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.
If you’ve been impacted by a recent disaster, you may qualify for a forbearance plan to help you recover during this challenging time. Other investor-specific criteria may apply. Once you sign in to your online account, you will be advised of your eligibility and if eligible, you’ll be able to request assistance online.
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.
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.
Loans that are in active bankruptcy or active litigation are unable to request mortgage assistance online. If you are interested in applying for assistance, please contact us for more information.
No. While you’re on the plan, no late fees or additional interest will be charged. Only the past due regular principal and interest payments will be due at the end of the forbearance, as well as any outstanding escrow payments.
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.
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 missed 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.
A 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).
Your current review/plan will be cancelled if you enter a Disaster Forbearance Plan. You may reapply at the end of your forbearance, but we cannot guarantee you'll be approved.
During your forbearance, we will not refer the mortgage to foreclosure or proceed to foreclosure sale. If any foreclosure action or proceedings were pending before your forbearance, those actions will be placed on hold. However, once your Disaster Forbearance Plan is over, unless you enter into a permanent solution to bring the loan current, the foreclosure process may commence or continue.
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.
We will automatically cancel your AutoPay. If you see that your AutoPay is not cancelled, however, you can cancel online here.
Yes. If you use online bill pay through your bank, please be sure to edit, cancel, or suspend payments to Mr. Cooper while on a forbearance plan. We have no control over these payments and therefore cannot cancel the occurrence on your behalf.
Since you are not making payments—or making a reduced payment—during a forbearance, 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.
Yes. You can cancel your forbearance plan at any time by contacting us. Just remember that when the forbearance plan ends, any payments missed during the forbearance plan will be due.
Possibly. While your forbearance is active, you are unlikely to qualify for a refinance of the home loan.
If the account is escrowed, taxes and insurance will continue to be paid out of the escrow account during a Disaster Forbearance Plan.
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.
Absolutely. You can sell your home at any time.
