What Happens to My Loan After a Natural Disaster?

• Author: Chris Remington
• Posted: 2024-08-24

If you were affected by a natural disaster, you might wonder, "What happens to my loan after a natural disaster?" If you are unable to make your monthly payments because of the damage, you may be able to receive a temporary suspension on your mortgage loan. While there are many factors that determine whether you will be able to receive a temporary suspension on your loan, there are some steps you can take to minimize the damage to your property and avoid default.

First of all, you need to contact your credit card issuers or lenders. They can help you with hardship options if you have trouble making your payments. Contact them before you miss a payment or you may have to pay your insurance deductible before your loan can be reinstated. After all, if your loan is a secured debt, you should contact your creditor right away and request assistance. This will help you get back on your feet and avoid defaulting on your loan.

Your lender will likely be able to offer you a 90-day delinquency period. This can be beneficial, but late payments can hurt your credit. Your lender will most likely waive late fees for disaster victims, but it is important to note that some may still charge a late fee. If you have missed a payment due to a natural disaster, contact your loan servicer to see if you can still receive a delinquent payment suspension.