Homes in the pathway of Hurricane Isaac could obtain a 12-month foreclosure forbearance if they have Freddie loans and are dealing with damages left in the wake of the storm.
Freddie said homeowner relief will be extended to borrowers with damaged homes located in Louisiana and Mississippi—both of which have been declared major disaster areas.
“Freddie Mac has authorized the nation’s mortgage servicers to provide a full range of mortgage relief options to affected borrowers with mortgages owned or guaranteed by Freddie Mac,” said Tracy Mooney, senior vice president of single-family servicing and real-estate owned at Freddie Mac.
“Forbearance on mortgage payments for up to one year is one of several options our servicers have been instructed to offer borrowers on a case-by-case basis.”
Freddie Mac offers several measures for qualified borrowers dealing with storm damage. In certain cases, the GSE will suspend foreclosure and eviction proceedings for up to 12 months. Freddie also waives assessments or penalties on late fees while blocking financial firms from reporting delinquencies or forebearances to the nation’s credit bureaus.
