Freddie Mac, one of the federal housing market giants, has announced that it will make it possible for homeowners without work to increase the period of time during which their mortgage payments can be lowered or suspended. Freddie has made this kind of move in the past, but it was for a period of 3 months. The amended offer increases this period to 6 months. In addition, the possibility of a one-year extension exists as well. This effectively doubles the previous extension which went no further than 6 months.
Another development involves the fact that companies that service Freddie Mac's home loans now have the right to halt the loan payments from unemployed homeowners without Freddie Mac's approval. Approval was required previously, which made the process more complicated and caused delays.
Those who have dealt with or are dealing with the painful reality of unemployment know all too well that it often takes far longer than 3 months to get back on your feet again. This is especially true in financial and economic conditions like those that are currently prevalent in the United States. An extension of this nature takes this fact into consideration, and it is a move which will provide at least a little bit of relief to as much as 10% of Freddie's mortgage holders. It's a course of action that seems to be having somewhat of a ripple effect, with Fannie Mae, another large government real estate player, announcing that it will be adopting a similar strategy in the near future.
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Freddie Mac Gives Unemployed Homeowners Some Time - San Francisco Real Estate Headlines | Examiner.com