Flooded Homeowner Claims Flood Relief Option Could Lead to Foreclosure

by San Antonio Attorney

Sometimes, it is not only through natural disaster that homeowners from Louisiana lose their homes.

The couple, Cathleen Dell and her husband, lives in Hammond.  Floods did not affect their home in March, but this was not an assurance that they were disaster free as they were severely affected by the flood in August.

Fortunately, the couple was spared from the disaster as they were rescued by a boat.  They opted to stay with a friend for about a week until the water subsided.  Their home has dried up but they are now facing the burden of steep bills for house repairs.

The affected home was not included in the flood zone and they were excluded from coverage.  They were given ample aid by the Federal Emergency Management Agency.  However, the couple attempted to communicate with their mortgage company so forbearance on mortgage can be done.

The couple expected short term relief, but instead face consequences due the unfavorable terms and conditions by the private mortgage company.  They signed up for a 90-day suspension of payments without knowing that after that duration they would have to pay all the bills at once.

Cathleen, the wife, said that she intended to contact the mortgage lender in order to make sure that appropriate information will be relayed.

Some say the terms for forbearance may vary and a lot of people may also suffer the same fate as the Dells.

Ms. Washington, an accountant, pointed out that sometimes the choice is up to the lender.  She added that there are a lot of protections for mortgages sponsored by the government but the disadvantage of this is the uncertainty of what the debtors are signing up for.

Washington pointed out the most important questions to consider such as when the payment will be made, if interest will be included on these payments and what are the things to bear in mind when making this move.

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