MORTGAGE RELIEF EXTENDED TO HURRICANE VICTIMS
(Daily Real Estate News, Tuesday, October 11, 2016)
Mortgage giants Freddie Mac and Fannie Mae are offering several mortgage options for those home owners affected by Hurricane Matthew in the Atlantic coastal areas. Options include forbearance for up to 12 months or mortgage modifications.
Freddie Mac's disaster relief options will be available to borrowers whose homes are located in declared Major Disaster Areas, in which federal individual assistance programs are being made available to help affected households. A list of these areas can be found at http://www.fema.gov/disasters.
"We strongly encourage the many American families whose homes or businesses are being impacted by Hurricane Matthew to call their mortgage servicer once the Federal Emergency Management Agency's declaration is announced," says Yvette Gilmore, Freddie Mac's vice president of single-family servicer performance management. "Relief - including forbearance on mortgage payments for up to one year - may be available if their mortgage is owned or guaranteed by Freddie Mac."
Freddie Mac's mortgage relief options include:
- Suspending foreclosures by providing forbearance for up to 12 months;
- Waiving assessments of penalties or late fees against borrowers with damaged homes from the hurricane;
- Not reporting forbearancve or delinquencies prompted by the hurricane to the credit bureaus.
Similarly, Fannie Mae is offering forbearance to any borrowers affected by the hurricane and delaying impactred foreclosure sales. Affected home owners may temporarily suspend or reduce their mortgage payments for up to 90 days, under Fannie Mae's guidelines. Lenders may also grant forebearance for up to six months thereafter and extend that by an additional six months, as needed.
Source: Freddie Mac and Fannie Mae.