Freddie Mac's 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 some federally declared Major Disaster Areas.
‘Freddie Mac and the nation's mortgage servicers will work together to advance available mortgage relief to homeowners affected by these devastating floods,’ says Ingrid Beckles, vice president of servicing and asset management at Freddie Mac. ‘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 says its 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.
The agency, for example, gives servicers the discretion to reduce or suspend mortgage payments for up to 12 months for borrowers with Freddie Mac-owned mortgages. Each case must be individually assessed to determine which alternative will best fit the homeowner's circumstances.
Source: Freddie Mac