The devastation caused by Hurricane Harvey will result in a flood of non-paid mortgages as stunned Houston homeowners begin to assess damages.
Fannie Mae and Freddy Mac have announced that they’ll offer leniency on mortgage payments for at least 90 days and could extend the benefit up to one year. That means borrowers wouldn’t have to make their monthly payments and no penalties would be charged.
Early estimates predict that more than 130,000 Houston homeowners could qualify for this forbearance. However, interest on delinquent payments will not be forgiven.
The task of rebuilding will be formidable and homeowner losses could be record-breaking. In the Houston area, there are more than twice as many mortgaged properties with nearly four times the unpaid principal balance as there were in the Louisiana and Mississippi counties hit by Hurricane Katrina in 2005.
The Mortgage Bankers Association is already hard at work, trying to assess the best way to move forward, putting out fact sheets for borrowers and sending loan data to the Federal government.
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Harold Willig is the Manager of SpringView Investment Management, LLC, which he founded in 2012. Mr. Willig also served as HFZ Capital Group’s Chief Financial Officer, and was responsible for the oversight of HFZ's Finance and Accounting team. He has over 16 years of finance and accounting experience.
Mr. Willig also ran a consulting practice and provided valuation, analysis, and transactional support services to multi-billion dollar real estate companies. Previously, Mr. Willig served as the Senior Controller and Vice President of Financial Analysis and then the Chief Financial Officer of the Athena Group, a multifamily development company and fund manager.