Freddie Mac informed mortgage servicers that borrowers with Freddie loans have a series of mortgage relief options available to them if their homes were damaged in Hurricane Sandy.
The program, which will provide forbearance up to a year as one potential option, is available to homeowners with Freddie loans and properties located in zones classified as major disaster areas by President Obama.
Freddie Mac said servicers dealing with qualified borrowers have the option to suspend foreclosure and eviction proceedings up to a year. They also can waive penalties or late fees and delay the reporting of delinquencies to credit bureaus.
The relief efforts used will be decided on a case-by-case basis.
Fannie Mae confirmed that it's current policies allow services to grant forbearance to borrowers when a qualified disaster occurs. "They can do up to 90 days of forbearance, then evaluate the borrower's situation to determine if additional forbearance is necessary based on damage to the property or the borrower not being able to make payments," said Pete Bakel with Fannie Mae.