Fannie Mae

Jump in late mortgages after Harvey sparks foreclosure fears

As Jacob Lerma surveyed the skeletal beams of his suburban Houston home that was flooded during Hurricane Harvey, he kept muttering three words as he wondered if his family would ever be able to move back in: "I don't know."

Like many Texans whose homes were flooded during Harvey, Lerma faces mounting expenses and hasn't paid his mortgage in months. His insurance payment wasn't enough to rebuild his home and he was only offered a small loan after applying with the Federal Emergency Management Agency. His last hope is a possible buyout from the city of Friendswood. In the meantime, he, his wife and two daughters will continue living with his parents.

"If the...

82°