Military Service Members to Receive Foreclosure Protection Through 2011

 

Posted by BEREL News Team on Wednesday, December 22nd 2010    

Freddie Mac will provide “certain military service members” with foreclosure protection through 2011, the government-controlled GSE announced yesterday. Freddie Mac believes that by delaying foreclosures on homeowners currently serving in the military, many of these individuals may be able to get on track with their payments. To this end, the GSE’s loan servicers will delay the start of foreclosure proceedings for at least nine months on “any service members released from active duty between now and the end of 2011.”

Anthony Renzi, a Freddie Mac spokesman, characterizes the move as a “small act [that] 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.” Freddie Mac is authorized to extend this protection through its original authorization in the Housing and Economic Recovery Act (HERA), passed in 2008, but had to extend the protection before the end of 2010 when its authorization to make such moves runs out. The protection only extends to military members with Freddie-Mac owned loans.