Government-sponsored enterprises Freddie Mac and Fannie Mae both recently announced expanded forbearance programs for unemployed homeowners that cannot afford mortgage payments.
Beginning February 1, 2012, Freddie Mac is giving mortgage servicers the authority to offer up to one year of mortgage forbearance (monthly payment exemption) to unemployed homeowners who have Freddie-backed mortgages. The change means loan servicers—including Bank of American Fork— can offer six months of forbearance to jobless borrowers without Freddie’s approval and another six months with its approval.
Fannie Mae also announced it will provide a similar program beginning March 1, 2012. Its program will allow servicers to provide up to six months of relief without getting approval from the government-sponsored enterprise. Special consideration can be given to borrowers who require up to 12 months of forbearance.
Bank of American Fork is one of the few local servicers authorized to offer forbearance under these programs. To see if you qualify or to learn more about the Freddie Mac and Fannie Mae programs, contact Bank of American Fork mortgage servicing manager Gary Sell at 801-642-3001 or firstname.lastname@example.org. Even if you don’t qualify for forbearance, you may be eligible for a relief refinance, which allows Freddie Mac-owned loans to refinance even if you owe more than the current value of your home.*