In the wake of Hurricane Isaac, many homes located in Louisiana and Mississippi were damaged or destroyed, and those with mortgages backed by Freddie Mac may be able to qualify for newly expanded assistance programs.
Disaster relief through the mortgage giant provides a number of opportunities for mortgage servicers to help affected borrowers.
"Freddie Mac has authorized the nation's mortgage servicers to provide a full range of mortgage relief options to affected 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.
Specifically, foreclosure proceedings on borrowers impacted by Hurricane Isaac will be suspended for up to 12 months, while penalties and late fees against borrowers will also be waived. In addition, forbearance and mortgage delinquencies will not be reported to credit bureaus during the same period.
Property data indicates damages from the storm are expected to exceed $2 billion, and this extended relief could take the finance pressure off of many struggling homeowners in the area for the time being.