Step one: call your mortgage servicer
Your servicer is the company you send your mortgage payment to. It may not be the lender that made the loan, and it's the company with the authority to offer disaster relief. Call as soon as you safely can — ideally before you miss a payment. The number is usually on your monthly statement, your servicer's website, or your online account.
When you call, have your loan number handy, explain that your home is in a disaster area, describe the damage, and tell them whether you can currently live in the home. Ask these questions and write down the answers, the date, and the name of the person you spoke with:
- Is my loan eligible for disaster forbearance, and how long would it last?
- Will late fees be waived, and will the servicer report the forbearance to the credit bureaus?
- What happens at the end of the forbearance — what are my options for the missed payments?
- How will you handle insurance claim checks made out to both of us?
- Is there a disaster-related foreclosure moratorium for my area?
Keep copies of everything the servicer sends you. If you're told something important on the phone, ask for it in writing.
Forbearance and FHA disaster loss mitigation
Forbearance is a temporary pause or reduction of mortgage payments. It is not forgiveness — the paused payments still have to be dealt with later. What matters is how they're repaid, and that's where loss-mitigation options come in.
If you have an FHA-insured mortgage and your home is in a Presidentially-Declared Major Disaster Area (PDMDA), HUD generally provides disaster-specific options through your servicer. Depending on your situation and current HUD guidance, those may include:
Disaster forbearance
A period of paused or reduced payments while you deal with the immediate aftermath and your insurance claim.
Foreclosure moratorium
For FHA-insured loans in PDMDAs, HUD generally provides an initial foreclosure moratorium period that may be extended; confirm with your servicer.
Loss-mitigation options
After forbearance, FHA servicers can review you for options designed to bring the loan current without a lump-sum payment. Which ones you qualify for depends on HUD's current rules and your finances.
Other loan types
Conventional, VA, and USDA loans have their own disaster-relief policies. The first step is the same: call your servicer and ask what's available.
203(h) is time-sensitive. Tell Matthew your county and what happened to your home — he'll help you check eligibility and next steps.
Talk with MatthewInsurance claim checks and your mortgage servicer
Because the lender has a financial interest in your home, homeowners insurance claim checks for structural damage are often made payable to both you and your mortgage servicer. You generally can't cash them without the servicer's endorsement.
For larger claims, many servicers deposit the funds into a restricted account (sometimes called a loss-draft account) and release money in stages as repairs are completed and inspected. Ask your servicer for its written claim-check procedures early, and ask what documents it needs — typically the adjuster's report, a signed contractor bid, and inspection sign-offs.
- Keep a copy of every check, letter, and adjuster report.
- Separate payments for contents and additional living expenses are often made to you alone — ask your insurer.
- If you are deciding whether to rebuild or move, talk with your servicer and your insurer before you commit to a path.
Property taxes after a disaster
A badly damaged home may be worth less on January 1 than it was before the disaster, but your tax bill won't adjust unless someone tells the appraisal district or assessor. Some states — Texas among them — have provisions that may allow a reappraisal or temporary tax relief for property damaged in a declared disaster. Rules, eligibility, and deadlines vary by state and county.
Contact your county appraisal district or tax assessor soon after the disaster and ask what's available. If your taxes are paid through an escrow account, let your servicer know about any change so your escrow payment can be recalculated.
FEMA, SBA, and HUD-approved housing counselors
- Register with FEMA. If your county is designated for Individual Assistance, register at DisasterAssistance.gov. FEMA assistance may help with temporary housing and certain repair costs not covered by insurance. Registering also creates a record of your loss that can be useful later.
- Look into SBA disaster home loans. The U.S. Small Business Administration may offer disaster loans to eligible homeowners and renters in declared areas to repair or replace real estate and personal property. Availability depends on the declaration; details are at SBA.gov.
- Talk with a HUD-approved housing counselor. Counselors can help you compare servicer offers, organize paperwork, and plan a budget. Their help is generally free or low-cost. Use HUD's housing counselor locator or call 1-800-569-4287.
Disaster scams to avoid
Scammers follow disasters. They target people who are exhausted, displaced, and waiting on money. Watch for these common schemes:
Contractor fraud
Door-to-door crews that demand large deposits, pressure you to sign today, or aren't licensed where your state requires it. Get written bids, check references, and pay as work is completed.
Loan modification scams
Companies promising to "save your home" or negotiate with your servicer for a fee. Your servicer and HUD-approved counselors can help you directly.
Fake officials
People posing as FEMA, insurance, or government inspectors who ask for money or personal information. Real FEMA inspectors don't charge fees.
How Matthew can help later
In the first weeks, your servicer, insurer, FEMA, and a housing counselor are the right calls. Once the dust settles and you know where your insurance claim stands, a mortgage conversation can help you decide what comes next:
- Moving instead of rebuilding? If your home was in a qualifying major disaster area, FHA 203(h) may help you buy a replacement home. Check the current disaster areas and the 203(h) requirements.
- Repairing or rebuilding? Pairing 203(h) with 203(k), or a standard FHA 203(k), may finance repairs. The sister site FHA 203(k) Info explains renovation loans in depth.
- Refinancing after repairs? Once the home is repaired, a refinance may be worth reviewing, subject to approval.
Matthew can walk through the numbers with you and tell you honestly which path fits. Contact Matthew when you're ready.
Frequently asked questions
Does forbearance mean my payments are forgiven?
No. Forbearance temporarily pauses or reduces payments, but the missed amounts still have to be addressed later through a repayment option your servicer offers. Ask how the payments will be handled before you accept.
Will a disaster forbearance hurt my credit?
Reporting practices vary by loan type and servicer. Ask your servicer how the forbearance will be reported, get the answer in writing, and check your credit reports afterward.
Is there a foreclosure moratorium after a disaster?
For FHA-insured loans in Presidentially-Declared Major Disaster Areas, HUD generally provides an initial moratorium period that may be extended; confirm with your servicer.
Should I stop paying my mortgage if my home is destroyed?
Don't simply stop paying. Call your servicer first and ask about disaster forbearance. Missing payments without an agreement can lead to late fees and credit damage.
Where can I find free help with my mortgage?
HUD-approved housing counselors generally offer free or low-cost help. Use HUD's locator at hud.gov/findacounselor or call 1-800-569-4287.
Find out if FHA 203(h) fits your situation
Tell Matthew a little about the property and your plans. He'll follow up by phone or email — no obligation.
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