Freddie extends mortgage forbearance for unemployed

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.

Posted by

Lauren Essy

Broker/ Owner

Denver Urban Homes LLC



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Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

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

Jan 08, 2012 12:24 AM #1
Sherry Scales
Austin Texas Homes, LLC - Leander, TX
Realtor, for Austin, TX and surrounding areas

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!

Jan 08, 2012 12:52 AM #2
Cameron Novak
The Homefinding Center - Corona, CA
Featured Corona Real Estate Agent Team

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.

Jan 08, 2012 04:37 AM #3
Steve Queen
Exit Realty - Bowie, MD
Chosen Realtor for Bowie And Laurel

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

Jan 08, 2012 10:04 AM #4
Lauren Essy
Denver Urban Homes LLC - Denver, CO

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

Jan 11, 2012 03:13 PM #5
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