Freddie Mac has extended its relief policies for borrowers whose homes have been affected by Hurricane Isaac and are located in Louisiana and Mississippi jurisdictions. These areas have been declared as “Major Disaster Areas” by the President. In these areas, the President has made federal Individual Assistance programs available to affected individuals and households.
Freddie Mac and its Disaster Relief Policies provide various options for the mortgage servicers so that they can help affected borrowers in the Major Disaster Areas where the federal Individual Assistance programs have been extended.
It should be noted here that Freddie Mac strongly supports the servicers and encourages them to help affected borrowers by:
- Foreclosure suspension: Freddie Mac encourages the mortgage servicers to suspend the foreclosure and eviction process for up to 12 months after the disaster has taken place.
- Waive off penalties: In order to help the homeowners affected by the disaster, Freddie Mac has decided to waive off the penalties or late fees against borrowers who have disaster-damaged homes.
- Not reporting forbearance to the credit bureaus: In order to help the distressed borrowers, Freddie Mac has decided to not report the forbearance or delinquencies caused by the disaster to the different credit bureaus. This will help the borrowers to save their credit from a negative mark.
- Forbearance help: Freddie Mac has also instructed the mortgage servicers to give borrowers Forbearance on mortgage payments for up to 1 year. However, this option will be offered to the borrowers on a case-by-case basis.
If the distressed homeowners require any further information regarding this mortgage relief option, then they should contact their respective mortgage servicer. They may even contact Freddie Mac at 800-FREDDIE. Freddie Mac's general disaster relief policies are posted online at: “www.freddiemac.com/singlefamily/service/disastermgmt.html”
So, if you are one of the homeowners who is going through a tough time due to Hurricane Isaac, then you should immediately contact your mortgage services or the Freddie Mac!