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Disaster Relief Available for Homeowners with GSE Loans

Homeowners with mortgages guaranteed by ""Freddie Mac"":http://www.freddiemac.com/ may be eligible for payment relief if they are located in an area that has been devastated by Hurricane Sandy.

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The GSE announced it is encouraging servicers to help borrowers through different forms of assistance such as suspending foreclosure and eviction proceedings for up to a year, waiving penalties or late fees against borrowers with disaster-damaged homes, and not reporting delinquencies caused by the disaster to credit bureaus.

""Freddie Mac has authorized the nation's mortgage servicers to provide a full range of mortgage relief options to affected borrowers with mortgages owned or guaranteed by Freddie Mac,"" said Tracy Mooney, SVP of single-family servicing and real estate owned at Freddie Mac. ""Forbearance on mortgage payments for up to one year is one of several options our servicers have been instructed to offer borrowers on a case-by-case basis.""

Freddie Mac advised homeowners to contact their mortgage servicer for find out about their options. The company's general disaster relief policies are posted ""online"":http://www.freddiemac.com/singlefamily/service/disastermgmt.html.

""Fannie Mae"":http://www.fanniemae.com/portal/index.html also announced relief for borrowers who are struggling with their mortgage due to Sandy.

The GSE's guidelines allow servicers to temporarily suspend or reduce a homeowner’s mortgage payments for up to ninety days if a homeowner has been impacted by the hurricane. Servicers are also expected to contact affected homeowners within 90 days to see if additional assistance is needed.

About Author: Esther Cho

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