MCLEAN, Va. – Freddie Mac announced that is its suspending evictions and foreclosures on homes secured by Freddie Mac owned-or guaranteed mortgages in eligible disaster areas in the aftermath of Hurricane Sandy.
“Given early assessments of Hurricane Sandy’s devastating impact, we are preparing steps that will authorize automatic and immediate action by the nation’s mortgage servicers to help more borrowers with mortgages owned or guaranteed by Freddie Mac,” said Tracy Mooney, Senior Vice President of Single-Family Servicing and Real Estate Owned at Freddie Mac. “These steps are intended to provide borrowers with peace of mind and help lay the groundwork for a faster recovery in the neighborhoods and communities affected by the storm.”
Freddie Mac is revising its disaster relief policies to authorize mortgage servicers to:
- Automatically suspend for 90-days evictions and foreclosure sales for borrowers with homes secured by Freddie Mac owned-or guaranteed mortgages and located in eligible disaster areas. Borrowers are still encouraged to contact their servicers to discuss their situation. Freddie Mac disaster policies enable servicers to extend forbearance and repayment plans for up to 12 months on a case-by-case basis without prior Freddie Mac approval.
- Authorize servicers to verbally grant 90-day forbearances to all borrowers in eligible disaster areas, including borrowers with mortgages modified under the Home Affordable Modification Program (HAMP) or who are currently in a HAMP or Standard Modification Trial Period Plan.
- Expedite the distribution of insurance proceeds on storm damage claims to speed up repairs of storm-damaged homes.