Freddie Mac commented Wednesday that its' full menu of mortgage relief policies are available for borrowers who are affected by disasters in the state of Washington from recent flooding and landslides. The company said, "Freddie Mac's disaster relief policies enable servicers to help borrowers with homes in presidentially declared Major Disaster Areas where federal Individual Assistance programs are being made available."
Tracy Mooney, SVP of Single-Family Servicing at Freddie Mac, commented, "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 up to 12 months of forbearance on their mortgage payments. We strongly encourage borrowers to contact their servicers, who are fully authorized to work with them on a case-by-case basis."
Freddie Mac's offerings include help such as placing borrowers on forbearance and an ability to suspend foreclosures for up to 12 months. Additionally, servicers can waive assessments of late fees against borrowers with disaster-damaged homes.
The company also noted that servicers do not have to report forbearance triggered by the disaster to the nation's credit bureaus. Servicers may also suspend eviction lock-out for up to 90 days.
Freddie Mac noted, "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."
The company also made special note to remind servicers to consider relief policies for borrowers who work in eligible disaster areas, but live in unaffected areas.