Freddie Mac Gives Jobless a Break

By:: Kara Johnson | January 10, 2012

Unemployed homeowners can now be excused from making mortgage payments for up to a full year on Freddie Mac-supported home loans, the lender has announced.

The new program doubles the length of time unemployed homeowners can obtain a forbearance on a Freddie Mac mortgage, up from six months previously. The new program takes effect Feb. 1, 2012.

“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.”

Approximately 10 percent of mortgage delinquencies on Freddie Mac home loans are tied to unemployment, according to the company.

Lenders servicing Freddie Mac mortgages may offer unemployed homeowners up to six months of forbearance without Freddie Mac approval, and may get approval to extend it another six months. Borrowers currently in a shorter forbearance program may be able to obtain an extension under the new initiative.

Previously, longer forbearances on Freddie Mac mortgages were only allowed for circumstances such as natural disasters, extending medical emergencies or permanent disability.

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