Government mortgage financier Freddie Mac announced this week that it will direct its loan servicers to offer mortgage relief to those affected by the recent Midwestern storms.
Homeowners living in counties that the President declared to be “Major Disaster Areas” may be eligible for a number of relief efforts, including suspended mortgage payments for up to a year.
Freddie Mac has also strongly encouraged its loan servicer partners to suspend foreclosures and eviction proceedings for up to 12 months, waive penalties and late fees against borrowers, and not report forbearance or delinquencies caused by the disaster to the major credit reporting bureaus.
The benefits will be given on a case-by-case basis to those who have seen their homes damaged or destroyed by the storms.
“In the wake of these astonishing storms, 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 Anthony Renzi, Executive Vice President of Single-Family Business, Operations and Technology at Freddie Mac, in a release.
Freddie Mac is one of the nation’s largest investors in residential mortgage loans, with the company and sister firm Fannie Mae owning or guaranteeing about half of all mortgages in the United States.
For more information regarding the program, contact your mortgage servicer.