Katrina: Mortgages, Mail, Pensions, Bills, etc: what provisions?

Factual Questions
1

I’ve been wondering what happens for homeowners in New Orleans with a mortgage. Evacuated amidst chaos, is there any provision made? Do they have to try to get through to the lender and negotiate for a suspension of payments without penalty? Or what?

I just read that the Post Office is telling evacuees to put in a change-of-address to their temporary location and “Your mail will follow you”, which is a good thing.

That makes some provision for Social Security and pensions, for people who have found an address. How about the others?

Now I’ve found a cite for credit card bills. What they say is depressing.

The person goes on to say that there some attention is being taken in Congress as to this, including

So far, that’s just a proposition, and no doubt late fees are being charged starting now. So that’s a sort-of answer to this part of this GQ.

What about other financial matters, last week’s paycheck and so on?

2

For homeowners, isn’t the house part covered by there flood insurance?

3

…their flood insurance? :smack:

4

How about the ones who are still living in the storm ravaged area? The Post Office is refusing to deliver mail, so they are really screwed. And just to rub it in, there is this:

5

The scum credit card companies probably won’t do anything, unless they get enough bad PR.

6

Most homeowners will not have flood insurance. It’s not covered in regular homeowners policies – the only issuer of flood insurance is the federal government, and it’s only available in designated zones. It probably only covers a percentage of the replacement value of the structure only.

7

You are correct that most homeowners will not have flood insurance, but it is incorrect that insurance is available only in declared flood zones. That used to be the case but for the past several years anyone who wants flood insurance can buy it flood zone or not. Also your flood coverage can be up to the replacement value of you home and contents.

8

After 9-11, the Red Cross offered Twelve months of living expenses, mortgage/ rent, funeral and memorial expenses, and other immediate expenses to “spouse/partner and family members” who were supported by a person who was killed in the 9-11 attacks. This is much bigger, but it would not shock me to see something similar for the people displaced from Katrina.

Cite and specfics of the 9-11 program

LIVING EXPENSES: food, heat, clothing, telephone. $1000 per month for the first person with an additional $200/mo per immediate family member

MORTGAGE/ RENT

FUNERAL AND MEMORIAL EXPENSES includes travel costs, hotels, and phone bills.

OTHER IMMEDIATE EXPENSES includes (but is not limited to) 9 months of:
Car payments
Medical bills and ongoing prescriptions
Independent insurance payments
Child and eldercare
Car and home insurance
Tuition payments
Credit cards

9

I heard on the news last night that Ford, GM and Chrysler are defering the car payments for people in the affected areas. I don’t know for how long.

10

Slate just asked this question, you can find their response here.

Short answer is yes, you still have to pay your mortgage and other debts. Long answer is that there are relief funds that you can apply to.

11

I believe it’s 90 days.

12

Sears is doing this for their card holders (in addition to donating materials and money)

From their press release:

I hope other companies are roundly denounced in the media if they don’t do the same or better.

13

MrPeabody, thanks for the clarification. On another thread, someone mentioned that in some zones flood insurance is mandatory. Can you confirm this? Are there issuers other than the federal government?

14

I was wondering what something like this does to a supplemental insurance company, like Aflac.

I saw an Aflac commercial last night. Guy sitting on the couch with a broken leg, talking to his friend about how Aflac is taking care of all his bills, while the duck is running around in the background writing checks and stuff, making me wonder if they’d have to pay out for a disaster like this.

15

I’ve been in contact with my credit card company (I have a United Mileage Plus Visa through Bank One), and was told that my payment can be delayed 30 days without penalty, which was nice of them. My problem is that I was in the prcoess of moving from Michigan to New Orleans when the storm hit, with half my money in my old bank and half in my new bank. Hopefully I can transfer my moey back to Michigan without too much hassle…

What I’m still wondering about is my rent. I have an apartment in the Garden District, and my building that probably didn’t sustain much damage, but to my knowledge there isn’t anyone there to receive my rent checks, or answer my calls about it. Am I responsible for rent during the months that the city is uninhabitable? I’m sure every landlord has a different policy and I’d look at my lease to make sure, but I left it in New Orleans when I evacuated!

16

No problem,

If you have a mortgage you will required to purchase flood insurance but if you are outside of the flood zone or have you home paid off then is not required. You may still purchase it for your own protection.

Many companies submit flood insurance applications but all of it it is underwritten by the federal government.