In a move that should not come as much of a surprise, Freddie Mac announced that mortgage servicers are authorized to provide unemployed borrowers with up to six months of forbearance. As a result, if you are an unemployed mortgage owner of a loan with Freddie Mac, you may apply for and receive six months to find a job and remedy any deficiencies. Additionally, Freddie Mac will extend the benefits further for those homeowners who apply for an extension. Those homeowners will receive an additional six months, totaling a total year of forbearance on making mortgage payments.
While this may help some borrowers, it is important to recognize that this move does not guarantee that Freddie Mac will continue to work with you once the forbearance has expired or that they will take partial payments in order to come current on the loan. In fact, most lenders will require the immediately repayment of any missed payments once the forbearance period has expired.
For many of my clients, a decrease in income of loss of income is a great time to consider whether a loan workout with your mortgage lender is possible. For many, the reduced income may provide a document hardship that can permanently modify your mortgage payment. In some cases, our office has been able to reduce the principal balance on home loans that are significantly worth less than the loan.
If you are facing unemployment or a decrease in income, contact our office immediately. We can help you determine whether a loan modification is a reasonable option and also look at other options to keep you in your home and eliminate a second mortgage. Call us today at (877) 346-7411.