Freddie extends mortgage forbearance for unemployed

By
Real Estate Broker Owner with Denver Urban Homes LLC
Friday, January 6th, 2012, 3:00 pm


Mortgage finance firm Freddie Mac will give unemployed borrowers a break on their mortgage for up to one year.

"These expanded forbearance periods will provide families facing prolonged periods of unemployment with a greater measure of security by giving them more time to find new employment and resolve their delinquencies," said Tracy Mooney, senior vice president of single-family servicing and REO at Freddie Mac.

"We believe this will put more families back on track to successful long-term homeownership,” Mooney adds.

Freddie said the new deal expands the powers of mortgage servicers. The edict gives servicers the ability to forebear a mortgage for six months without prior approval from Freddie. Freddie Mac can approve an additional six months after that.

Previously, Freddie Mac allowed servicers to grant up to three months of forbearance with no payment, or six months at a reduced payment, without prior approval.
The new options go into effect on Feb. 1.

Longer forbearance times used to be restricted to events such as natural disasters, permanent disability or long-term medical emergencies — and required prior approval.

William Dudley, president of the Federal Reserve Bank of New York, called for principal forgiveness from Fannie Mae and Freddie Mac, something both GSEs say is not worth doing.

Write to Jacob Gaffney.

Follow him on Twitter @jacobgaffney.

http://www.housingwire.com/2012/01/06/freddie-mac-extends-mortgage-forbearance-to-unemployed-to-one-year

Posted by

Lauren Essy

Broker/ Owner

Denver Urban Homes LLC

c:720-354-8858

e:lauren@denver-urban-homes.com

www.Denver-Urban-Homes.com

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Topic:
Lending / Financial
Location:
Colorado
Tags:
freddie
mortgage
unemployed
lauren essy
colorado
denver
housingwirecom

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Rainmaker
791,888
Tim Lorenz
949 874-2247
TIM LORENZ of Keller Williams Realty

Not sure about this one.  I see the kindness of the gesture but I am not sure if it will work.

January 08, 2012 12:24 AM
Rainmaker
202,508
Sherry Scales
Realtor, for Austin, TX and surrounding areas
Austin Texas Homes, LLC

I think it is wonderful.  We work hard to get a home, furnish it, and keep a roof over our heads for our family.  I know folks who have needed almost a year to find a job.  They are not slackers...hard working folks!  You hate to see them lose everything they have worked so hard for because of the economy.  Wouldn't it be wonderful if everyone looking for a job could find one in a day or two.  No unemployment!  No foreclosures!

January 08, 2012 12:52 AM
Rainmaker
394,328
Cameron Novak
Featured Corona Real Estate Agent Team
The Homefinding Center

They don't have any problem spending any or all of my money.  They also don't care how hard I have to work for it before they take it away in the form of taxes.  Signed, Waiting For November.

January 08, 2012 04:37 AM
Rainmaker
106,589
Steve Queen
Chosen Realtor for Bowie And Laurel
Exit Realty

great information Lauren! i will pass it along if I run into a situation where this information could help someone.

January 08, 2012 10:04 AM
Rainer
62,374
Lauren Essy
Denver Urban Homes LLC

I agree Tim,  I guess we will find out soon enough.

January 11, 2012 03:13 PM
Anonymous
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Rainer
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Lauren Essy

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