Do I still have to pay my mortgage if my house is destroyed in a hurricane in Florida?
Florida residents are affected by hurricanes and tropical storms every year, but what do these storms mean for your mortgage payments?
The team of attorneys at Louis Law Group hear this question a lot. Luckily, there are a few options to help you out financially as you recover from the hurricane.
You should still make your mortgage payments after a hurricane
Always try to keep making your mortgage payments, if you can. If you suddenly stop paying your mortgage, you run the risk of late fees and negative impacts on your credit score, even if your home was destroyed.
You could qualify for mortgage forbearance from your lender
If you’re in a position where you cannot make your mortgage payments, you can ask your lender for mortgage forbearance.
A forbearance is an agreement that allows you to stop making payments for a certain amount of time. Usually, these agreements last for up to six months and can help you reduce your monthly expenses as you make repairs or look for a new place to live.
However, interest is still accruing during the time you’re not making the monthly payments, according to a report by Nerdwallet.
The mortgage lender may require you to make larger payments after the forbearance period ends, so be sure you can handle that extra financial responsibility down the road.
If you have a mortgage, you probably have homeowner’s insurance that could help
After a hurricane, be sure to document the damage to your property and get in contact with your homeowner’s insurance company right away. If your home is destroyed, your homeowner’s insurance company should compensate you for the house value stated in your policy and the value of the contents of your home.
However, your home may have been underinsured. That means your insurance company payment may not provide enough money to pay off the remainder of your mortgage.
There are other times when the might insurance company wrongfully deny your claim or refuse to pay their share of repair costs. If this happens, contact an experienced property damage attorney to represent you.
Federal loans and grants can also help you recover from storm damage
The Small Business Administration offers disaster relief loans to individuals and families to help offset property damage repair costs. SBA loans can be as much as $200,000.
You can also ask about a FEMA grant to help cover costs that your homeowner’s insurance doesn’t cover. Households can receive up to $35,500 after a disaster.
Contact Louis Law Group
Click here to contact our team of attorneys or call us at 954-676-4179 to book a free consultation.
Our attorneys can assist you in English, Spanish, or Creole.
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