A timeout called forbearance for the jobless with mortgages
If you or someone you know has lost a job and are in danger of falling behind on mortgage payments, here’s some potentially important news for you: The two largest players in home mortgages, Fannie Mae and Freddie Mac, are revising their policies on forbearance when unemployment interferes with your ability to stay current on your loan.
Forbearance means that a lender or mortgage-servicing company will either suspend — cut to zero — or reduce required monthly payments for a specific period of time. On loans they own or have securitized, Fannie and Freddie are now directing servicers to forbear when a borrower can show the loss of a job.
Are you a struggling homeowner? Check out our Avoiding Foreclosure section for resources and tips.