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March 14th, 2013 (Modified on May 3rd, 2013)

Lenders continue to aid victims of Hurricane Sandy

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(The comment section of this post has been updated with additional information for Wells Fargo customers. Please see the comments below for more information.)

Buying justice macroAfter Hurricane Sandy wreaked havoc on the East Coast in late October 2012, financial institutions stepped up with relief efforts including deferred mortgage payments for borrowers who lost their homes, lost income or experienced major damages. Although the storm passed nearly five months ago, many homeowners are still struggling financially. Mortgage lenders have updated their responses to continue to assist borrowers in the aftermath of the storm.

Chase

Chase recently announced they are allowing some of their borrowers to defer payments missed during the moratorium until the end of their loan term.

“We created a payment moratorium to help our customers who were struggling after Sandy and now we’re allowing them to make those payments over an extended period of time,” Kevin Watters, CEO of mortgage banking, said in a press release. “We will automatically adjust their loan with no documentation required and at no cost to them.”

Borrowers must have been current on their loan before the storm and Chase must own their loan in its portfolio. The bank is working with investors to extend the loan repayment program to borrowers whose loan is not owned by Chase. Customers can get more information at their local branch or by logging onto InsuranceClaimCheck.com.

CitiMortgage

CitiMortgage extended forbearance to their mortgage customers as long as they were not 12 months or more delinquent on their home loans prior to the storm. Borrowers who continue to be impacted by the storm can extend their forbearance for up to six months. If their loan is owned by Fannie Mae or Freddie Mac and the investors agree, the extension can be as long as 12 months and the extension can go up to 18 months for FHA loans.

“We are committed to working as quickly as possible under the requirements of investors, insurers and others to help our customers impacted by Sandy,” said Mark Rodgers, director of public affairs for Citi, in an email. Customers can get help at their branch or by calling customer service at 888-248-1616.

Wells Fargo

Wells Fargo Home Mortgage senior vice president Marie Day said in an email, “For customers in FEMA-declared disaster areas who have contacted us and are impacted by the storm, we extended the mortgage payment moratorium until April 26, 2013. The moratorium suspends all payments, credit bureau reporting, late fees, collection calls and in some cases, foreclosures.”

Once the moratorium ends, borrowers will begin regular payments and can work out repayment of exempted payments with the bank. Mortgage customers can get individualized assistance at bank branches and mortgage offices, by calling the Wells Fargo Disaster Hotline at 888-818-9147 or on the website.

Bank of America

“Bank of America offers one of three repayment options to borrowers who have received forbearance following a disaster, depending on the individual’s situation, qualifications and mortgage investor guidelines we must follow,” Rick Simon, Bank of America Home Loans media relations spokesperson, said in an email.

Borrowers may want to make a lump sum payment at the end of their forbearance period, but Bank of America won’t demand this of customers uncomfortable with that choice, Simon said in an email.

Other borrowers can choose a short-term repayment period during which they add a small amount to their regular monthly payment until the forbearance amount has been repaid.

Homeowners who require a longer forbearance may be offered a loan modification that incorporates the forbearance amount into the remaining principal on the loan or extends the loan term, effectively moving the additional payments to the end of the loan. Borrowers can get more information at 800-669-6607 or www.BankofAmerica.com

As April’s six-month anniversary of Hurricane Sandy looms, victimized homeowners should contact their lender to find out what options are still available to ease the financial pain of the storm. (If your bank wasn’t mentioned in this post, be sure to still contact them immediately to see if additional relief options have been announced.)

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7 Responses to “Lenders continue to aid victims of Hurricane Sandy”

  1. Chuck Says: March 21st, 2013 at 10:26 pm

    I have a Wellsfargo mortgage and am having trouble catching up on the cumulative amount owed from the Sandy Moretorium. Wellsfargo has made this process especially difficult and till today, they have not made a decision or detrmination on my situation… Looks like Sandy is going to cause me to foreclose and WF is not helping…

    Please help… I’ll take all the advice I can get at this point.

  2. bg Says: March 26th, 2013 at 11:50 pm

    I am having the exact same problem with Wells Fargo. We were current prior to Sandy and have opted for the moratorium in order to use those funds to repair our home. Now once that moratorium period is over they say they will start forclosure proceedings. They have been extremely difficult to work with during this whole period. Its been a constant struggle with Wells Fargo on every front from getting them to release insurance proceeds for repairs to speaking about help so not to be foreclosed on.

  3. Chuck Says: April 1st, 2013 at 12:43 pm

    I think this article should be edited to remove Wells Fargo, as they are doing nothing to help us catch up on the cumulative balance owed from the moratorium.

    Has anyone gotten any help from Wells Fargo? If so, how were you able to achieve this?

    Thanks

  4. Lawyer Says: April 21st, 2013 at 11:07 am

    Wells Fargo is a disgraceful company in my opinion, based on my experiences with that company. Never again would I so much as open a checking account with Wells Fargo. The promise a moratorium yet posted a foreclosure notice on my door for all my neighbors to see when the only payments I missed in 12 years are those subject to the moratorium which they offered for me to skip so that I could use that money to try to save my home and business. I just read they are one of the most profitable banks, but it appears to me that they are succeeding while running roughshod over hurricane sandy victims and others who were misguided enough to do business with them in teh first place. I have never in my life dealt with a more nasty, dumb and incompetent group of individuals in my life. It is an absolute disgrace and as soon as I get back on my feet I am moving my business elsewhere. Shame on you Wells Fargo. I can’t stand any more lies, misrepresentations, broken promises and ignorance from your company. If I were as dishonest and unethical as the people at Wells Fargo I’d walk awat from my obligations and stick you with a home worth nothing and let you deal with it.

  5. art l Says: May 1st, 2013 at 6:51 am

    so instructions from hud is meaningless in the eyes of wells fargo..wells not doing any extensions

  6. Tim Manni Says: May 1st, 2013 at 9:16 am

    Hello everyone,

    First off, thanks for your comments…I’m noticing a theme here.
    Would anyone be willing to be interviewed for a story on the topic?
    I’ll research Wells and Sandy Victims some more info and let everyone know if I find out anything.
    Thanks,
    Tim

  7. Tim Manni Says: May 3rd, 2013 at 9:19 am

    Hello everyone,

    I’ve been looking into the Wells Fargo situation regarding additional Sandy relief. Several readers have complained that Wells Fargo was offering little to no aid in terms of an extension of mortgage relief. According to a source I spoke with, while Wells originally decided not to move forward with additional help for Sandy victims, it appears as though they have reconsidered and are now moving forward with additional relief.

    If you are having trouble maintaining your mortgage payments, contact Wells Fargo immediately to review your options. If that doesn’t work, try contacting the Consumer Financial Protection Bureau (CFPB) and filing a complaint. Here’s the URL: http://www.consumerfinance.gov/complaint/

    Keep me posted. Thanks,
    Tim Manni (HSH.com)

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Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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