Freddie Mac is extending mortgage relief to Colorado homeowners whose homes were damaged or destroyed by last week’s floods. Freddie’s mortgage relief policies authorize mortgage servicers to help affected borrowers in presidentially declared disaster areas, according to a Tuesday news release.
"Freddie Mac is urgently reminding the nation's mortgage servicers about the full range of mortgage relief options they can provide to affected borrowers with mortgages we own or guarantee, including forbearance on mortgage payments for up to one year,” said Tracy Mooney, senior vice president of single-family servicing and REO at Freddie Mac.“We strongly encourage borrowers to contact their servicers, who are fully authorized to work with them on a case-by-case basis."
Under Freddie’s mortgage relief program, servicers of affected borrowers can:
Place borrowers on forbearance and suspend foreclosures for up to a year;
Waive late fees against borrowers whose homes were damaged in a disaster;
Not report forbearance caused by the disaster to credit bureaus; and
Suspend eviction lock-outs for 90 days.
“Under a new Freddie Mac mortgage modification option, after the disaster forbearance ends, the servicer can add skipped payments to the outstanding loan balance and extend the mortgage term, while keeping the borrower's mortgage payment essentially the same,” Freddie stated in the news release.
Further details on Freddie Mac’s disaster relief policies can be found at: freddiemac.com/singlefamily/service/disastermgmt.html