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77 » We are entering what is expected to be a hyperactive hurricane season » e nation's overall delinquency rate is the highest it has been in nearly a decade, and some of the states with the highest rates are in disaster prone areas » Home prices are declining, eroding equity » e nation's unemployment rate is higher than it has been in years » Flood insurance coverage for homeowners in harm's way is unrealistically low is could be the most promising moment in the history of the IRS casualty loss program. For homeowners, lenders and servicers, the IRS casualty loss program could be a blessing. is program allows victims of federally declared disasters to claim unreimbursed losses as tax deductions. ose deductions can be of immediate benefit if claimed on an amended tax return, or they may be reported for the year in which they occurred. Regardless, they can result in thousands of dollars that can be used for property repairs, to purchase necessities, or to avoid delinquency. e money belongs to the homeowner. It is their money and does not need to be repaid. Lenders and servicers would be wise to include reference to this program in their outreach messaging following a disaster. Mortgage loan customers are probably unaware this program exists. Here is a real opportunity to provide valuable financial help to customers during a time of need, which might also serve as the finest customer retention tool ever employed. And, if you are engaged in customer outreach, why not contact victims who are noncustomers as well. What a great customer acquisition opportunity! Regardless of how the IRS casualty loss program is incorporated into your outreach program following a disaster, it is an option that cannot be overlooked at this historically difficult time. SEPTEMBER 25, 2020 UPDATE: e 2020 disaster season has lived up to all predictions. ere have been 31 major disaster declarations and 18 emergency declarations to date, affecting homeowners in 32 states and hundreds of counties. e wildfire season, which is not nearly over, has been the worst on record. Although unemployment is improving post–COVID-19, it remains at 8.4%. Delinquency and foreclosure rates are at their highest levels in decades. And COVID-19 continues to threaten economic recovery while social unrest—unanticipated as we entered 2020—has disrupted our economy even further and is beginning to put negative pressure on home prices in many parts of the country. It is imperative that lenders and servicers incorporate the IRS casualty loss program into their disaster outreach programs. Mark Stockton is founder of Disaster Relief. His company provides a service that helps disaster victims comply with the requirements of the IRS casualty loss program. (mark@ disaster-relief.us)