Freddie Mac's Mortgage Relief for Hurricane, Wildfire Seasons

July 18, 2024 (KreditSanta News) | As hurricane and wildfire seasons become more intense, Freddie Mac (OTCQB: FMCC) is reminding homeowners and mortgage servicers about the relief options available. Specifically, those affected by Hurricane Beryl and the California wildfires can benefit from Freddie Mac’s forbearance program, which provides up to 12 months of mortgage relief without late fees or penalties.

“Freddie Mac and its partners stand ready to provide immediate assistance to those impacted by disasters like Hurricane Beryl and the California wildfires,” said Mike Reynolds, Freddie Mac Single-Family Vice President and Head of Servicing. “Our immediate mortgage relief options are available to help support recovery once homeowners and their families are out of harm’s way. Recent natural disasters such as Beryl serve as a reminder that hurricane season is upon us, and we encourage homeowners and others to prepare now.”

Homeowners impacted by eligible disasters, including insurable property losses and homes in Presidentially-Declared Major Disaster Areas with individual assistance designations, can access Freddie Mac's disaster relief options. Legal proceedings, such as foreclosure, are suspended while homeowners are on a forbearance plan.

Homeowners should contact their mortgage servicer - the company they send their monthly mortgage payments to - as soon as possible to discuss available mortgage relief options. This also includes those whose employment has been impacted, causing financial hardship that prevents them from making their monthly payments.

Several options are available to homeowners once they are back on their feet:

• Reinstatement:

  Homeowners can make a lump sum payment to cover missed payments, though it is not required. If possible, this is the fastest way to get back on track.

• Repayment Plan:

  Homeowners can add extra payments to their monthly mortgage to catch up on missed payments

• Payment Deferral:

  This option allows homeowners to resume regular monthly payments, with missed payments added to the end of the mortgage term without interest or penalties.

• Loan Modification:

  For those facing long-term financial hardship but can manage a reduced mortgage payment, a loan modification may be the best solution.

Freddie Mac also reminds servicers that its disaster relief options are available to homeowners outside declared disaster areas if their home incurs a disaster-related insured loss affecting their ability to make mortgage payments.