2013 Colorado Flood: Mortgage and Housing Help

]Aerial images from the Colorado FloodsThere are Federal Guidelines Mortgage Service Companies and Banks Servicing Mortgages have to provide disaster relief. Among the programs is mortgage payment forbearance relief for up to a year. For additional mortgage specific information refer to the following resources.


The National Association of REALTORS® (NAR) REALTORS® Relief Foundation (“RRF”) is donating up to $100,000; matching CAR’s contribution of $50,000 plus additional donations CAR receives for the victims who were impacted by the recent horribly destructive floods here in Colorado. Click this link for more information.


U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to the State of Colorado and provide support to homeowners and low-income renters forced from their homes due to severe storms, flooding, landslides and mudslides.

FNMA [Fannie Mae]

Mortgage Assistance – Fannie Mae works directly with mortgage servicers to offer special options for those impacted by disasters. Eligible homeowners in single-family properties with a Fannie Mae mortgage loan who are experiencing difficulty paying their mortgage may qualify for:

  •          Forbearance that can temporarily suspend or reduce mortgage payments
  •          Suspension of legal actions in process (i.e., foreclosures)

FHLMC [Freddie Mac]

Freddie Mac’s disaster relief policies enable servicers to help borrowers with homes in presidentially declared Major Disaster Areas where federal Individual Assistance programs are being made available.  Under the directive issued by Freddie Mac today servicers can place borrowers with properties affected by the flooding on forbearance and suspend foreclosures for up to 12 months.  This forbearance need not be reported to the nation’s credit bureaus.  Servicers can waive late fees assessed against borrowers whose homes were damaged by the disaster.  Evictions and lock-outs can also be suspended for up to 90 days.

When forbearance ends, a new Freddie Mac option allows servicers to add missed mortgage payments to the outstanding loan balance and extend the term of the loan in order to keep the monthly mortgage payment essentially unchanged. Freddie Mac is also reminding servicers to consider Freddie Mac’s standard relief policies, including forbearance or mortgage modifications, for borrowers who work in eligible disaster areas but live in unaffected areas. For additional information refer to these helpful tools for you to use with your discussions with your lender.

Flood Damage to Properties Under Contract Compliments of Colorado Association of Realtors (CAR)

The “Principal of Compensation” is always controlling when a parcel of land’s boundary line is actually a moving body of water such as a stream or river. When a title company insures a legal description and one of the boundary lines becomes a river channel or a stream, the title commitment will alert the purchaser that the property is subject to the “principal of compensation ” as an exception to the title disclosed under Schedule B-2 of the title commitment. Sometimes the course may run along the bank, shore, side or edge. Sometimes the course may run to the center or thread of the flow. If the stream was considered navigable at the time of statehood, the bed of the stream or river is owned by the state. Every state defines navigability differently.

 A parcel of land may be subject to the following:

1. Accretion (gain of land deposits) by water flow

2. Reliction (gain of land deposits) by water receding

3. Erosion (loss of land by water encroaching

4. Avulsion (loss of land by sudden change in course)

For additional disaster relief services one may wish to refer to, among others, the following resources:

From Senator Michael Bennet: All Coloradans who have suffered damage due to the flooding should register with FEMA even if their counties have not yet been declared in the Presidential Major Disaster Declaration.

From Senator Mark Udall: As Colorado’s senior senator, I want to make sure flood victims also have the tools they need to rebuild. That’s why I have gathered
many of the most helpful resources on my website,

7th Congressional District Colorado 2013 Flood Response and Resources

Disaster Assistance

FEMA [Federal Emergency Management Services]

Help Colorado Now

Colorado Housing Search is helping flood victims in Boulder and Larimer Counties. Donations for VACANT rental properties, vacation homes, can be listed through Colorado Housing Search. Donated rooms in homes can NOT be accepted 

Colorado Farm Bureau Foundation

Aerial photo from

Financially Speaking™  James Spray, CCMB, CNE, FICO Pro – September 18, 2013 – CO LMO 100008715 | NMLS 257365

 Notice: The information on this blog is opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance to make certain your legal interpretation and decisions are correct. This information is not legal advice and is for guidance only. You may use this information in whole and not in part providing you give complete attribution to James Spray.

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