Freddie Mac is extending mortgage relief policies to Colorado homeowners whose properties were damaged or destroyed due to the recent flood events in the area.
Through the McLean, Va.-based company’s disaster relief policies, servicers can help borrowers with homes in presidentially declared major disaster areas where federal individual assistance programs are available. So far, individuals in the following counties can apply for assistance: Adams, Boulder, Larimer and Weld.
Servicers can place affected borrowers in these areas on forbearance and suspend foreclosures for up to a year. Additionally, they can waive assessments of late fees against borrowers with disaster-damaged homes, not report forbearance issued caused by the disaster to the nation’s credit bureaus, and suspend eviction lockouts for up to 90 days.
Meanwhile, under a new Freddie Mach mortgage modification option, after the forbearance ends, the servicer can add skipped payments to the outstanding loan balance and extend the mortgage term, while keeping the borrower’s mortgage payment basically the same.
“Freddie Mac is urgently reminding the nation’s mortgage servicers about the full range of mortgage relief options they can provide to affected borrowers with mortgages we own or guarantee, including forbearance on mortgage payments for up to one year,” said Tracy Mooney, senior vice president of single-family servicing and REO at Freddie Mac.
“We strongly encourage borrowers to contact their servicers, who are fully authorized to work with them on a case-by-case basis.”