Industry News

Freddie Mac extends foreclosure suspension for hurricane victims

Borrowers get relief through February

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Mortgage giant Freddie Mac is extending its foreclosure suspension on mortgages in the Hurricane Katrina and Rita disaster areas through the end of February, the company said today. The government-sponsored enterprise is extending foreclosure suspension through Feb. 28, 2006, and is adopting other policies so servicers can continue to extend "the highest level of understanding" to storm victims seeking to extend the mortgage suspension period that ends today, the company said. The new policy only applies to Freddie Mac-owned loans on homes in major disaster areas designated by FEMA as qualifying for individual assistance, the company said. The mandatory forbearance and foreclosure suspensions adopted after Hurricanes Katrina and Rita have helped several thousand borrowers cope with the aftermath of the two storms. To make the post-Dec. 1 extension process more efficient for more borrowers, Freddie Mac is waiving its usual documentation requirements and giving servicers the authority ...