HOW TO RECOVER FINANCIALLY AFTER A NATURAL DISASTER

June 1st begins hurricane season!
A weather emergency can force you to leave your home without money, ID’s, debit or credit cards and other important items, so here are some practical steps to begin your financial recovery.

• You’ll need money and may be able to use checks, ATM’s, credit and debit cards or wire transfers from family and friends in other locations, however, if your cards or ATM are stolen, go to (https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards). Call the card issuer ASAP to report the loss and get new cards. If you don’t have the card issuer’s phone number, call 1-800-555-1212. Remember federal law protects you from loss for unauthorized use of your credit and debit cards
• It’s important to stay in contact with your employer. Verify that you’ll continue to receive a paycheck and health insurance and for how long. If you’re displaced and not able to access your direct deposit pay, you can ask to have it re-directed to a bank location closer to where you are.
  
  • To contact your retirement company, Social Security Administration or other benefits office, call: 1-800-772-1213 (http://www.ssa.gov/emergency/).
    
  • To contact The Veterans Benefits Administration (http://benefits.va.gov/benefits/), call: 1-800-827-1000. Tell the offices your new location and find out if benefit payments are made available by check, direct deposit or payment card.
    
  • To contact The Department of Labor, call: 1-866-4-USA-DOL works with state and local governments to issue unemployment insurance and other assistance.
    
• CREDIT: If you have lost your financial records and need help identifying your creditors or need to verify whether your accounts are being tampered with, get your free credit reports from annualcreditreport.com, (http://www.annualcreditreport.com) or call 1-877-322-8228. Credit card companies, lenders, financial institutions, landlords, utilities and others may offer help to people affected by disasters. CONTACT THEM AND ASK FOR HELP! They may be willing to: defer payments or offer extended payment plans, extend grace periods, waive late fees, raise credit limits, refrain from reporting delinquencies and may even postpone collection, repossessions and foreclosures.
  • Ask your creditors for short term loans for living expenses, increase in your credit limits or cash advance until you begin to receive insurance or other disaster relief funds.
  • If you applied for home repairs money, ask your homeowner insurance or mortgage company about the status of your application. While your loan is in process or approved, find out how much money will be released and how frequently to make the necessary repairs. If your home is so severely damaged that you believe repairs are unnecessary, ask if available home insurance funds can be used to pay off your mortgage and/or cover personal property. Review your mortgage loan documents and insurance contract for details also.
  • Contact your utility companies, cell phone companies and financial institutions and report that you have lost your belongings in a natural disaster. Ask them to waive late fees and defer your payments or consider a different payment schedule.
  • Contact your bank or credit union. Ask them to waive ATM fees, overdraft fees and reporting to the credit bureaus. Also, ask them to waive any penalties on early withdrawal of CD’s (Certificate of Deposits).
  • Contact your credit card companies and ask to change your billing address to your temporary address. Ask to defer or skip payments in the short-term, waive late fees, over-the-limit fees, reduce interest rates and increase credit and cash advance limits.
  • For Mortgage, car and other loans and leases, ask to defer your payments for a few months or until you’re back on firm financial footing.  
• WHO TO CONTACT FOR LOST OR DAMAGED DOCUMENTS:

1. Deeds and recorded real estate documents: County’s Recorder of Deeds
2. Mortgages and other credit: Lender or financial company
3. Leases: Landlord or financial company
4. Insurance policies: Insurance company/agent 
5. Wills: Attorney (If the will is destroyed, you’ll need another one)
6. Checks, Savings documents and Investment materials: Bank, Investment Company or Broker 
7. Car Title, Driver’s License: Secretary of State or DMV 
8. Birth Certificate: Vital Statistics Office form the county where you were born 
9. Social Security Card:  local Social Security Administration Office 
10. Tax Returns: IRS Center 
11. Other documents like contracts or divorce judgments: Your Attorney or the courts

For more information, see Replacing Your Vital Documents (http://www.usa.gov/citizen/topics/family-Issues/Vital-Docs.shtml) and visit Dealing with Weather Emergencies (https://www.consumer.ftc.gov/feature-0023-weather-emergencies)

• MORTGAGE INSURANCE FOR DISASTER VICTIMS:
  • FHA 203(h) Loans for Disaster Victims are open only to those in federally declared disaster areas. This loan can be used to purchase a replacement home, rehab an existing home or as a refinance loan. The borrower must live in the property and must make application for the 203(h) within one year of the date the federal disaster area is declared. The borrower must have a minimum FICO score of 500 to qualify for this program.
  • FHA 203(k) insurance enables home buyers to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home. Insurance for rehabilitation is authorized under Section 203(k) of the National Housing Act (12 U.S.C 1709 (4k). Program regulations are at 24 CFR 203.50. For more information, contact the FHA Resource Center.