December 18 2010 (Chris Moore)
Freddie Mac has continued to show its support for our brave service members by instructing its servicers to delay initiating foreclosure for at least nine months for financially troubled members who are released from active duty through the end of 2011 and have Freddie-backed mortgages.
Anthony Renzi, Executive Vice President of Single Family Portfolio Management at Freddie Mac stated, “Our military make sacrifices every day to protect our homes and families. 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.”
According to the news release December 17th, Freddie Mac is making this protection a requirement for servicing their mortgages although its original authorization in the Housing and Economic Recovery Act of 2008 (HERA) expires on December 31, 2010.
The nine-month stay was originally authorized for service members under amendments to the Service members Civil Relief Act (SCRA) included in HERA.
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.
Tags: freddie mac, service members, foreclosure, mortgages, freddie-backed mortgages, financially troubled service members