Government mortgage financier Fannie Mae announced today new measures to help those serving in the military avoid foreclosure.
The company said it will provide mortgage payment forbearance for up to six months where the death or injury of a service member on active duty leads to a hardship for military families with a mortgage obligation.
Fannie has also created a hotline, 877-MIL-4566, available to all service members looking to receive guidance about their mortgage options and subsequent assistance.
“The men and women of our Armed Forces have shown extraordinary commitment to our country while facing unique challenges as a result of their service,” said Jeff Hayward, Senior Vice President of Fannie Mae’s National Servicing Organization, in a release.
“No family impacted by a death or injury in the line of duty should have to face the additional burden of foreclosure as a result of the hardship. We want to do all that we can to provide support to these families at a time of need as we honor their sacrifices and service to our country.”
Service members or surviving spouses who may be eligible for the special forbearance should contact their bank or mortgage lender.
Any forbearance will be granted under Fannie Mae’s “Unique Hardships” guidelines with Fannie Mae’s approval.
Under forbearance, the bank or lender may reduce or suspend the borrower’s monthly mortgage payments for the specified period.
Credit bureau reporting will also be suspended during the forbearance period to minimize any negative credit scoring impact.