Freddie Mac Extends Mortgage Relief to IL Homeowners Impacted by Tornadoes
On November 27, Freddie Mac released an update titled Freddie Mac Immediately Extends Mortgage Relief to Illinois Homeowners Impacted by Tornadoes.
This is not new guidance.
Freddie Mac Immediately Extends Mortgage Relief to Illinois Homeowners Impacted by Tornadoes
MCLEAN, VA–(Marketwired – Nov 27, 2013) – Freddie Mac’s (OTCQB: FMCC) full menu of mortgage relief policies for borrowers affected by disaster is being extended to homeowners whose homes were damaged or destroyed by the severe storms, straight-line winds and tornadoes in Illinois. Freddie Mac’s disaster relief policies enable servicers to help borrowers with homes in presidentially declared Major Disaster Areas where federal Individual Assistance programs are being made available. Freddie Mac is one of the nation’s largest investors in residential mortgages.
Attribute to Tracy Mooney, Senior Vice President of Single-Family Servicing and REO at Freddie Mac:
“Freddie Mac is urgently reminding the nation’s mortgage servicers about the full range of mortgage relief options they can provide to affected borrowers with mortgages we own or guarantee, including forbearance on mortgage payments for up to one year. We strongly encourage borrowers to contact their servicers, who are fully authorized to work with them on a case-by-case basis.”
- Freddie Mac disaster relief policies authorize mortgage servicers to help affected borrowers in presidentially declared Major Disaster Areas where federal Individual Assistance programs have been extended. A list of these areas can be found at http://www.fema.gov/disasters.
- Freddie Mac mortgage relief options for affected borrowers in these areas include:
- Place borrowers on forbearance and suspend foreclosures for up to 12 months;
- Waiving assessments of late fees against borrowers with disaster-damaged homes; and
- Not reporting forbearance triggered by the disaster to the nation’s credit bureaus;
- Under a new Freddie Mac mortgage modification option, after the disaster forbearance ends, the servicer can add skipped payments to the outstanding loan balance and extend the mortgage term, while keeping the borrower’s mortgage payment essentially the same.
- Freddie Mac is also reminding servicers to consider Freddie Mac’s standard relief policies, including forbearance or mortgage modifications, for borrowers who work in eligible disaster areas but live in unaffected areas.
- Affected borrowers should immediately contact their mortgage servicer — the company to which they send their monthly mortgage payment.
- See freddiemac.com/singlefamily/service/disastermgmt.html for a description of Freddie Mac disaster relief policies.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com. Twitter: @FreddieMac
Please click here to view the online release.
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