Freddie Mac suspends all evictions, foreclosures in Sandy major disaster areas

In an effort to help borrowers affected by Hurricane Sandy, Freddie Mac is immediately mandating the suspension of evictions and foreclosures on homes secured by Freddie Mac owned-or guaranteed mortgages in eligible disaster areas.

Scheduled to go to mortgage servicers this week, the additional changes build on Freddie Mac’s Oct. 30 announcement of storm relief for borrowers with homes located in presidentially declared Major Disaster Areas where federal Individual Assistance programs are available.

Freddie Mac is one of the nation’s largest investors in residential mortgages.

Freddie Mac is revising its disaster relief policies to authorize mortgage servicers to:

• Automatically suspend for 90-days evictions and foreclosure sales for borrowers with homes secured by Freddie Mac owned-or guaranteed mortgages and located in eligible disaster areas Borrowers are still encouraged to contact their servicers to discuss their situation. Freddie Mac disaster policies enable servicers to extend forbearance and repayment plans for up to 12 months on a case-by-case basis without prior Freddie Mac approval.

• Authorize servicers to verbally grant 90-day forbearances to all borrowers in eligible disaster areas, including borrowers with mortgages modified under the Home Affordable Modification Program or who are currently in a HAMP or Standard Modification Trial Period Plan.

• Expedite the distribution of insurance proceeds on storm damage claims to speed up repairs of storm-damaged homes.

For more information on mortgage payment relief, homeowners should contact their mortgage servicer — the company to which they send their monthly mortgage payment — or call Freddie Mac at 800-FREDDIE.