Unemployed Get Break Through Forbearance

Although Freddie Mac and Fannie Mae have been at the forefront of negative mortgage lending news in recent months, efforts are being made to turn over a new leaf. Freddie announced an extension of their forbearance agreement program, aimed at helping jobless homeowners avoid foreclosure.

A Short Break

Good news is on the way for homeowners who have been victims of a turbulent economy and battered job market. Freddie Mac will be offering unemployed homeowners a chance to extend their mortgage forbearance program for up to 12 months.  The program’s extension is lifting prior qualification and approval standards, making it easier for homeowners to secure a forbearance agreement.

Previously, the program allowed mortgage lenders to give homeowners a three month forbearance with suspended payments or up to six months with reduced payments. Under previous terms, the longer forbearance periods held stricter qualification standards for approval. In the past, homeowners generally had to prove that they suffered a disability, long term medical condition or were victims of a natural disaster in order to qualify.