RISMEDIA, June 17, 2008-According to Freddie Mac, its full menu of relief policies for borrowers affected by disasters is being extended to families whose homes were damaged or destroyed by the recent floods in the Midwest and are located in certain federally designated Major Disaster Areas. Freddie Mac is one of the nation’s largest investors in residential mortgages.
“Freddie Mac and the nation’s mortgage servicers will work together to advance available mortgage relief to homeowners affected by these devastating floods,” said Freddie Mac Vice President of Servicing and Asset Management Ingrid Beckles. “We are instructing our servicers to work with borrowers with Freddie Mac-owned mortgages to receive forbearance on their mortgage payments for up to one year.”
Freddie Mac disaster relief policies provide a number of ways for mortgage servicers to provide borrowers with Freddie Mac-owned mortgages in the declared major-disaster areas where individual assistance has been extended. The policies are designed to help borrowers protect their credit ratings and financial interests in their homes.
Freddie Mac policies, for example, give servicers the discretion to reduce or suspend mortgage payments for up to 12 months for borrowers with. Each case must be individually assessed to determine which alternative will best fit the homeowner’s circumstances.
Freddie Mac also strongly encourages servicers to help affected borrowers with Freddie Mac-owned loans by:
– Waiving assessments of penalties or late fees against borrowers with disaster-damaged homes; and,
– Not reporting forbearance or delinquencies caused by the disaster to the nation’s credit bureaus.
– Suspending foreclosure and eviction proceedings for up to 12 months.
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