If you’ve been unable to take advantage of historically low mortgage refinance rates because you’re unemployed and are struggling to make your payments there’s good news from Freddie Mac. If your home loan is backed by Freddie Mac you can already get a payment forbearance; however, starting February 1st, 2012 Freddie Mac is doubling the amount of time you can get.
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that can save you thousands of dollars on your next home loan.
Unemployed mortgage holders can now get a payment holiday of up to 12 months on Freddie Mac backed mortgage loans, effective February 1st.
“These expanded forbearance periods will provide families facing prolonged periods of unemployment with a greater measure of security by giving them more time to find new employment and resolve their delinquencies,” said Tracy Mooney,a Freddie Mac senior executive. “We believe this will put more families back on track to successful long-term homeownership.”
According to Freddie Mac unemployment is responsible for ten percent of delinquent mortgage loans. If you’re already on a six-month forbearance from Freddie Mac you’ll be able to get an extension once the new initiative goes into effect.
In the past mortgage backers like Fannie and Freddie only allowed forbearances of this duration in the event of natural disaster, disability, or medical emergency.
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