Gustav Spurs Disaster Relief Reminder From Freddie Mac

Freddie Mac has sent to servicers a reminder of the disaster relief options available to borrowers with Freddie Mac-owned mortgages who were affected by Hurricane Gustav.

Servicers can offer relief under Freddie Mac guidelines to borrowers whose homes were damaged or destroyed, as well as to borrowers who may be unable to make their mortgage payments because they were evacuated to avoid the storm. Servicers should assess each case individually to determine if relief is warranted and which option best fits the homeowner's circumstances.

In addition, Freddie Mac gives servicers the discretion to reduce or suspend mortgage payments or foreclosure proceedings for up to 12 months for borrowers with Freddie Mac-owned mortgages in federally declared major disaster areas where individual assistance was provided.

Freddie Mac also strongly encourages servicers to extend several other measures to help affected borrowers with Freddie Mac-owned loans, including waiving assessments of penalties or late fees against borrowers with disaster-damaged homes, and not reporting borrowers to the nation's credit bureaus when a forbearance or repayment plan has been extended because of the disaster.

SOURCE: Freddie Mac


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