Government-sponsored enterprise (GSE) Freddie Mac has extended its mortgage relief policies for borrowers affected by disasters in the State of Washington, including homeowners whose homes in Snohomish County were damaged or destroyed by recent flooding.
Freddie Mac says its 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 mortgage relief options for affected borrowers in these areas include placing borrowers on forbearance and suspending foreclosures for up to 12 months and not reporting to the nation's credit bureaus the forbearance triggered by the disaster.
The GSE can also waive assessments of late fees against borrowers with disaster-damaged homes and suspend eviction lockouts for up to 90 days.
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 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 up to 12 months of forbearance on their mortgage payments," comments Tracy Mooney, senior vice president of single-family servicing at the GSE. "We strongly encourage borrowers to contact their servicers, who are fully authorized to work with them on a case-by-case basis.’
A list of these declared major disaster areas can be found here.
