Wondering why your neighbor that hasn’t paid a mortgage payment in a year is still living nextdoor or down the street from you? You might not think it’s fair since you pay your mortgage payment every month, but Freddie Mac is allowing forebearance on mortgage payments for up to 12 months. In some cases it’s longer than 12 months. Freddie Mac is trying to help unemployed homeowners, hoping they will find employment and be able to keep thier home. Below is an article about the help Freddie Mac is offering to homeowners.
By Ronald D. Orol
WASHINGTON (MarketWatch) – Freddie Mac announced that it was moving to help unemployed homeowners by expanding its forbearance options so unemployed borrowers with Freddie Mac owned or guaranteed mortgages can have their loan payments suspended or reduced for as much as 12 months. Specifically, the government-seized mortgage giant said it was giving mortgage servicers the option of providing six months of suspended or reduced payments to unemployed borrowers without Freddie Mac’s prior approval and as much as an additional six months with the firm’s approval. Previously Freddie Mac allowed servicers to grant up to three months of forbearance with no payment and without prior approval, or six months at a reduced payment with written prior approval. “These expanded forbearance periods will provide families facing prolonged periods of unemployment with a greater measure of security by giving them more time to find new employment and resolve their delinquencies,” said Tracy Mooney, a senior vice president at Freddie Mac. The expanded options took effect in February of 2012.