Due to the effects of Hurricane Sandy, Freddie Mac recently announced its plans to put all evictions and foreclosures for distressed properties on temporary hold in the area.
The new requirements likely will affect property data for the coming weeks and months, as there is an automatic halt for all evictions or foreclosure sales for loans backed by Freddie Mac, as long as the properties are within the specified disaster areas. Servicers will be able to hold off on approval from Freddie Mac, and they will also have an opportunity to continue forbearance and other types of repayment plans for as much as one year.
Insurance proceeds will be sped up for those with storm damage claims, as this may better serve homeowners who need repairs quickly, the announcement added. Servicers will be officially notified in the next week.
The decision was an update from the previous declaration in late October, where the government-sponsored enterprise announced that these areas would have suggested holds on evictions and foreclosures for as much as 12 months, as well as other measures.