Freddie Mac To Allow 12 Months Forbearance To Unemployed Home Owners

Unemployed Home Owners Get A Break From Freddie Mac

unemployed home ownersUpon direction from the Federal Housing Finance Agency, Freddie Mac recently declared it will permit mortgage servicers the power to provide additional months of forbearance to the unemployed home owners.   Mortgage servicers are now able to approve unemployed home owners and borrowers with Freddie Mac owned- or guaranteed-loans for six months of forbearance without prior approval from Freddie Mac.  Servicers of these loans can lengthen the forbearance period up to an additional six months with a previous Freddie Mac approval, allowing qualified unemployed borrowers with Freddie Mac owned- or guaranteed-mortgages up to twelve months of forbearance.  In addition, past due borrowers within a current short term forbearance plan will be assessed for an extended forbearance under the new policy taking effect on February 1, 2012.

In the past Freddie Mac permitted servicers to allow up to three months of forbearance with no payment and without previous approval, or six months at a reduced payment with prior authorization.  Extended forbearance needed previous approval and was often limited to occasions including natural disasters, permanent disability or prolonged health-related emergencies.

Based on the most recent statistics, virtually 10 percent of delinquencies on Freddie Mac mortgages were associated with unemployment.  The forbearance allowance will assist these struggling home owners during this economic downturn fueled by housing and employment sectors.  Heck, we may even see a slight decrease, for the time being, in the volume of Bank Owned properties currently flooding the housing market.

For more information on assistance to unemployed home owners, click here.

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Category : Blog &Foreclosures &Mortgage & Loan &National Housing News

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