Freddie Mac borrowers find relief

New federal guidelines set to go into effect February 1 will grant unemployed borrowers who have mortgages owned or guaranteed by Freddie Mac up to 12 months of forbearance to pay off their home loan. The new policy was designed to double the eligibility period for forbearance to help struggling homeowners avoid foreclosure and retain their homes.

Mortgage services can now approve unemployed borrowers for six months of forbearance without needing approval from Freddie Mac, according to Loan Rate Update. They can extend the forbearance period up to an additional six months with approval from Freddie Mac in an effort to help as many homeowners as possible.

"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," Tracy Mooney, senior vice president of the single family servicing and REO at Freddie Mac, told the source.

Homeowners in Atlanta also received help paying off their home loans at the American Dream Convention. The Atlanta Journal-Constitution reports the event was sponsored by the Neighborhood Assistance Corporation of America, and connected 500 mortgage counselors with struggling homeowners throughout the state. The counselors explained what options the borrowers had to avoid foreclosure and keep their home

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