The Post-Hurricane Matthew Housing Market

Posted On October 12, 2016

Hurricanes have the potential to cause devastating environmental and economic damage.  The housing market is especially sensitive to the effects of hurricanes because of the damage they can cause to homes.  In 2004, when hurricanes Charley, Frances, and Jeanne touched down in Florida, home sales slowed by almost 20%, only to rebound by 25% by December.  The negative impact of a hurricane is not permanent but can cause problems in the housing market.

CoreLogic estimates that total cost of the damage from Hurricane Matthew between $4 and $6 Billion.  Major mortgage lenders Fannie Mae and Freddie Mac have sent out notices to homeowners in the Southeast to notify them of mortgage assistance programs available. 

Fannie Mae’s Vice President of Servicing, Malloy Evans stated, “we understand that many families and communities are hurting as they deal with the damage caused by Hurricane Matthew […] We are working with our servicers to ensure assistance is offered to borrowers and communities in need.” 

Freddie Mac authorized mortgage servicers to help affected borrowers in presidentially declared Major Disaster Areas, which can be found at www.fema.gov/disasters.  Some of the relief options available are suspension of foreclosures by providing forbearance for up to 12 months; waiving assessments of penalties or late fees against borrowers with disaster-damaged homes; and not reporting forbearance or delinquencies caused by the disaster to the nation’s credit bureaus. 

Hurricane Matthew leaves behind record flooding across the Southeast.  Floodwaters in North Carolina aren’t expected to recede until Friday.  If you would like to help with disaster relief efforts, visit these suggestions from the Weather Channel.

Sources: RISMedia, Reuters, HousingWire, Winter Park/Maitland Observer