Freddie Mac Reminds Homeowners Impacted by Hurricane Helene of Mortgage Relief Options
Rhea-AI Summary
Freddie Mac (OTCQB: FMCC) has announced mortgage relief options for homeowners affected by Hurricane Helene. The company's forbearance program offers up to 12 months of mortgage relief without late fees or penalties. Freddie Mac emphasizes that safety is the top priority and encourages impacted homeowners to contact their mortgage servicers for assistance.
The relief options include suspension of foreclosure and legal proceedings during forbearance. After the forbearance period, homeowners have several options to make up missed payments, including reinstatement, repayment plans, payment deferral, and loan modification. These options are available to homeowners in Presidentially-Declared Major Disaster Areas and those whose homes or employment have been impacted.
Freddie Mac provides resources for both homeowners and renters through its My Home platform, offering guidance on recovery from natural disasters.
Positive
- Offering up to 12 months of mortgage relief without late fees or penalties
- Suspension of foreclosure and legal proceedings during forbearance
- Multiple options for homeowners to make up missed payments after forbearance
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- None.
News Market Reaction
On the day this news was published, FMCC declined 1.71%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
MCLEAN, Va., Sept. 30, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today is reminding homeowners and mortgage servicers of its immediate relief options for those impacted by Hurricane Helene. Freddie Mac’s forbearance program provides homeowners mortgage relief for up to 12 months without incurring late fees or penalties.
“For those impacted by Hurricane Helene throughout the Southeast, Freddie Mac and our partners stand ready to provide immediate assistance,” said Mike Reynolds, Freddie Mac Single-Family Vice President and Head of Servicing. “Safety is the top priority and once out of harm’s way, we want homeowners and their families to know our mortgage relief options are available to help support their recovery.”
Freddie Mac's disaster relief options are available to homeowners who have been impacted by an eligible disaster. This includes anytime the homeowner’s property experiences an insurable loss, and also covers instances where their homes or places of employment are located in Presidentially-Declared Major Disaster Areas with individual assistance designations. Foreclosure and other legal proceedings are also suspended while homeowners are on a forbearance plan.
Homeowners whose homes are impacted should contact their mortgage servicer—the company they send their monthly mortgage payments to— as soon as possible to talk about available mortgage relief options. This also includes homeowners whose places of employment have been impacted resulting in a financial hardship that prevents them from being able to make their monthly payment.
When they are back on their feet, homeowners have several options to make up the missed payments, including additional forbearance, if needed.
- Reinstatement. The option for a lump sum payment is available, but never required, if the homeowner’s loan is owned by Freddie Mac. If possible, however, it is the fastest way to get back on track.
- Repayment plan. Homeowners pay more each month on top of their existing mortgage payment to make up the missed payments.
- Payment Deferral. This option is available if homeowners can resume making their regular monthly payment. With payment deferral, homeowners become immediately current on their mortgage and missed payments are added to the end of the mortgage term without penalties or additional interest.
- Loan modification. If a homeowner is facing a long-term financial hardship but can make a reduced mortgage payment, a modification may be the best option.
Freddie Mac also reminds servicers that its disaster relief options are available to affected homeowners outside the declared disaster areas if their home incurs a disaster-related insured loss that impacts their ability to make their mortgage payment.
More information is available on My Home by Freddie Mac where owners can read about the steps they can take to help recover from a natural disaster, including frequently asked questions related to disaster and mortgage relief. Freddie Mac also provides dedicated resources to renters in apartment buildings, to help them plan and prepare for natural disasters, as well as respond and recover after they strike.
About Freddie Mac
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube
MEDIA CONTACT: Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com
FAQ
What mortgage relief options is Freddie Mac offering for Hurricane Helene victims?
How can homeowners affected by Hurricane Helene access Freddie Mac's mortgage relief options?
What are the options for homeowners to make up missed payments after the Freddie Mac forbearance period?
Does Freddie Mac (FMCC) suspend foreclosures for homeowners affected by Hurricane Helene?
