Freddie Mac recently reminded homeowners and mortgage servicers of its relief options for those affected by Hurricane Idalia. Freddie Mac’s forbearance program provides homeowners mortgage relief for up to 12 months without incurring late fees or penalties, Freddie Mac announced in a press release.

“The protection and safety of those impacted by Hurricane Idalia are our top priority,” Bill Maguire, Freddie Mac’s vice president of Single-Family Servicing Portfolio Management, said in the release. “Freddie Mac and our partners stand ready to provide assistance. We want homeowners to know that our mortgage relief options are here to help support their recovery once they are out of harm’s way.”

Freddie Mac's disaster relief options are available to homeowners who have been impacted by an eligible disaster. This includes anytime the homeowner’s property experiences an insurable loss and covers instances where their homes or places of employment are located in Presidentially Declared Major Disaster Areas where federal individual-assistance programs are made available to affected individuals and households.

Foreclosure and other legal proceedings are also suspended while homeowners are on a forbearance plan, the release stated.

Additionally, homeowners whose homes are impacted should contact their mortgage servicer as soon as possible to talk about available mortgage relief options. This also includes homeowners whose places of employment have been impacted, resulting in a financial hardship that prevents them from being able to make their monthly payment.

When homeowners are back on their feet, they have several options to make up the missed payments, including additional forbearance, if needed. They include:

• Reinstatement. The option for a lump sum payment is available, but never required, if the homeowner’s loan is owned by Freddie Mac. If possible, however, it is the fastest way to get back on track.
• Repayment plan. Homeowners pay more each month on top of their existing mortgage payment to make up the missed payments.
• Payment Deferral. This option is available if homeowners can resume making their regular monthly payment. With payment deferral, homeowners become immediately current on their mortgage and missed payments are added to the end of the mortgage term without interest or penalties.
• Loan modification. If a homeowner is facing a long-term financial hardship but can make a reduced mortgage payment, a modification may be the best option.

Freddie Mac also reminds servicers that its disaster relief options are available to affected homeowners outside the declared disaster areas if their home incurs a disaster-related insured loss that impacts their ability to make their mortgage payment. Affected homeowners currently on a COVID-19-related forbearance or other relief plan, including from a previous natural disaster, should contact their servicer to discuss options.