Foreclosures Put on Hold for Some Service Members

Service members with a Freddie Mac-backed mortgage and who are released from active duty through 2011 have some breathing room in terms of foreclosure.

The government-sponsored mortgage loan purchaser announced Friday that its servicers will stop foreclosures for at least nine months for eligible service members. The goal is to help service members who are struggling to make payments get back on their feet.

“Our military make sacrifices every day to protect our homes and families,” Anthony Renzi, executive vice president of Single Family Portfolio Management at Freddie Mac, said in a news release. “This small act will protect financially troubled service members when they return from active duty by giving them more time to work with their lender to stay in their home.”

The temporary foreclosure stay only applies to military members whose mortgages are owned by Freddie Mac. The company doesn’t issue loans to individual borrowers. Instead, it purchases mortgages on the secondary market.

Service members who are in need of a financial lifeline should contact their mortgage servicer immediately.

The announcement comes on the heels of a mortgage relief measure from Fannie Mae earlier this fall.

Fannie Mae said in September that it would cut back or simply suspend mortgage payments for up to six months for military families hit by financial hardship after the injury or death of a service member.

Service members with VA loans can also contact their nearest regional VA loan center to discuss mortgage relief options.

To learn more, service members can visit Freddie Mac’s page on special options for service members.