As you most certainly know – or should know – by now, Hurricane Sandy tore up the east coast like that kid whose mom deactivated his World of Warcraft account.
What you might not know is that Freddie Mac found it in the goodness of its heart to suspend evictions and foreclosures on homes secured by Freddie Mac in eligible disaster areas.
Freddie Mac will automatically suspend evictions and foreclosure sales for borrowers in eligible disaster areas for 90 days right off the bat. If you are in an eligible disaster area, you’re strongly encouraged to talk with your servicer to discuss your situation.
Servicers are also authorized by Freddie Mac to grant 90-day forbearances to all borrowers in eligible disaster areas.
Furthermore, Freddie Mac also plans on speeding up the distribution of insurance proceeds on storm damage claims to help hurry the repairs of storm-damaged homes.
Tracy Mooney, senior vice president of Single-Family Servicing and Real Estate Owned at Freddie Mac, said, “Given early assessments of Hurricane Sandy’s devastating impact, we are preparing steps that will authorize automatic and immediate action by the nation’s mortgage servicers to help more borrowers with mortgages owned or guaranteed by Freddie Mac. These steps are intended to provide borrowers with peace of mind and help lay the groundwork for a faster recovery in the neighborhoods and communities affected by the storm.”
If you’re home is in the eligible disaster area, but you’re not sure whether or not Freddie Mac backs your loan, use this loan look-up tool from Freddie Mac to see if it’s backed.
You can also check out our post about what to do now that Sandy is gone for tips and advice on how to properly file insurance claims and how to make sure you’re getting the right amount from your deductible.
You can also view Freddie Mac’s disaster relief policies here for answers to some questions you may have.