Mortgages - Help for Storm Victims HOMEOWNERS reeling from the effects of Hurricane Sandy may find that their mortgage servicer is willing to ease some of the immediate financial burden. Both Fannie Mae and Freddie Mac - the mortgage finance giants that guarantee or own most residential mortgages - have authorized their servicers to grant a 90-day forbearance period to borrowers in federally declared disaster areas. "The expectation is that your life has been disrupted and the house may have been damaged," said Brad German, a spokesman for Freddie Mac, "or your place of employment may have been damaged and your job may be unavailable." Under forbearance, a lender agrees not to take action against a delinquent borrower. In turn, a borrower agrees to a payment plan that would bring the mortgage current within a set period of time. Borrowers in disaster areas who expect they will have difficulty making their regular mortgage payments on time should contact their loan servicer to explain their circumstances. Designated disaster areas can be found at fema.gov/disasters. Servicers have been authorized to grant the 90-day respite right over the phone. "No documentation is needed in this moment of emergency," Mr. German said. "The key point is to streamline the process from the servicers" point of view so they can help more people." Borrowers who have had their mortgages modified under the Home Affordable Modification Program are also eligible for forbearance. A mortgage reprieve will ease the financial burden on those who have had storm-related expenses like hotel and restaurant bills. It will also give borrowers who have suffered extensive property damage the time they need to "focus and think," said Peter Elkowitz Jr., the chief executive of the Long Island Housing Partnership, a nonprofit affordable housing developer and provider of foreclosure counseling services. "They have to decide, if they have the money to rebuild," he said, "are they going to build in the same location, or are they going to move?" After 90 days, the forbearance period may be extended up to a year, on a case-by-case basis. Servicers are to waive any late payment charges, and suspend the reporting of missed payments to national credit bureaus. Even borrowers who were in foreclosure before the storm will get a breather. The agencies say they are suspending foreclosure sales and evictions for 90 days. The foreclosure suspension also applies to mortgages insured by the Federal Housing Administration. Before borrowers contact their servicer for help, they should first try to determine who owns their loan. To find out if Fannie Mae owns your loan, go to knowyouroptions.com/loanlookup. The link for Freddie Mac is freddiemac.com/corporate/. If homeowners lost their financial documents in the storm, or if they are still without power, they may not know where to start, Mr. Elkowitz noted. He advises people in this category to contact a counseling agency certified by the Department of Housing and Urban Development, which can then reach out on their behalf. At the Long Island Housing Partnership, Mr. Elkowitz is expecting "a whole new group of people coming in, people who wouldn't normally have been in a default situation. "Now their house is destroyed," he added. They are trying to keep their job, and they have to look for a new place to live. His agency is helping borrowers whose homes were damaged, but not ruined, by flooding. Using emergency funds donated by Citibank, it will help homeowners in low- to moderate-income areas repair or replace water-damaged electrical systems, furnaces and water heaters.