Due to the widespread influence of Hurricane Sandy, homeowners in the areas affected now have multiple mortgage relief options to make paying off the loans more manageable.
The disaster relief policies enacted by President Barack Obama for loans backed by government-sponsored enterprise Freddie Mac will allow servicers to prevent foreclosed houses as well as eliminating evictions for as much as one year. Additionally, there will be a waiving of penalties and other late fees for mortgage holders, if their home was damaged.
Freddie Mac also noted there could be a suspending of forbearance and delinquencies for properties affected by the hurricane, which may cut down on the level of bank-owned properties.
"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.
For the week ending October 25, the GSE's mortgage data showed the 30-year fixed-rate mortgage averaged 3.41 percent, a four-basis-point rise from the previous week's figure. However, the level was still near its record low, which may make loan refinances more attractive for consumers.