Freddie Mac cuts some slack for unemployed borrowers

Published On: January 17, 2012


 

Freddie Mac is giving mortgage servicers an expanded authority to provide up to six months of forbearance to unemployed borrowers without Freddie Mac approval and up to a year of forbearance with prior approval.  These options will take effect on Feb. 1, 2012.  Translation:  if your mortgage loan is owned or backed by Freddie Mac, your lender may be able to let you make no payments without penalty if you are unemployed and financially unable to do so.  According to the latest statistics, nearly 10 percent of delinquencies on Freddie Mac mortgages were tied to unemployment by the borrowers.  Former forbearance plans were generally restricted to natural disasters, disability or long-term medical emergencies.

Good news for home owners, now you can plan to get back on your feet and not lose your home!