Midwest Storm Victims to Get Mortgage Relief

June 1, 2011

Freddie Mac has authorized mortgage servicers to offer several mortgage relief options--even suspending mortgage payments for up to a year, in some cases--to borrowers recently devastated by storms in the Midwest.

In Joplin, Mo., tornadoes just over a week ago leveled more than 8,000 buildings and killed more than 130 people.

"In the wake of these astonishing storms, 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 Anthony Renzi, executive vice president of single-family operations at Freddie Mac.

In areas President Obama has declared as major disaster sites, borrowers, on a case-by-case basis, will be eligible to reduce or suspend mortgage payments for up to 12 months. Freddie also would consider lifting foreclosure and eviction proceedings there for up to one year as well as possibly waiving assessments of penalties or late fees against borrowers in damaged homes. Freddie also said it might choose to not report to the credit bureaus forbearance or mortgage delinquencies that were caused by the storms.

Source: “Freddie Mac Offers Mortgage Relief to Midwest Storm Victims,”HousingWire (May 31, 2011)