Midwest Storm Victims to Get Mortgage Relief

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)

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