Freddie Mac has instructed its servicers to delay initiating foreclosure for at least nine months for financially troubled service members who are released from active duty through the end of 2011 and have Freddie Mac-owned mortgages. Freddie Mac is one of the nation's largest investors in conforming, conventional mortgages.
Freddie Mac's decision to extend the nine-month foreclosure stay will give lenders more time to work with service members that are having difficulty paying their mortgage. The nine-month stay was originally authorized for service members under amendments to the Service members Civil Relief Act (SCRA) included in HERA.
"Our military make sacrifices every day to protect our homes and families," said Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac. "This small act will protect financially troubled service members when they return from active duty by giving them more time to work with their lender to stay in their home."
Freddie Mac is making this protection a requirement for servicing our mortgages although its original authorization in the Housing and Economic Recovery Act of 2008 (HERA) expires on Dec. 31, 2010.
For more information, visit www.freddiemac.com.