By October 18, 2010 0 Comments Read More →

Military Families To Get Mortgage Relief

Military families struggling to stay current on their mortgage payments may be in line for some relief.

Fannie Mae and some of the country’s top mortgage lenders have agreed to establish special forbearance procedures for Armed Forces members. Service members injured on active duty can have their mortgage payments reduced or eliminated for up to six months. The same measure will be in place for the families of service members who are killed in action.

The goal will be to help service members and their families find a long-term solution.

“There are a lot of people in this company who have a real passion to do something for soldiers,– Jeff Hayward, senior vice president of Fannie Mae’s National Servicing Organization. “No family impacted by a death or injury in the line of duty should have to face the additional burden of foreclosure as a result of the hardship. We want to do all that we can to provide support to these families at a time of need as we honor their sacrifices and service to our country.”

Fannie Mae also plans to suspend negative reporting to credit bureaus during the forbearance period, a move that would help service members avoid taking a potentially major hit to their credit scores.

Forbearance opportunities are not limited to borrowers with VA loans.

Among the mortgage lenders joining Fannie Mae are Citi-Mortgage, USAA, Wells Fargo, Bank of America, JP Morgan/Chase, Luxury Mortgage Corp. and First Citizens Bank. A government-sponsored enterprise based in Washington, D.C., Fannie Mae is the largest purchaser and backer of mortgages in the nation.

The company has also created a special hotline for military families struggling to make their mortgage payments. Service members and their families can call the Fannie Mae Military Support Hotline at 1-877-MIL-4566. They can also visit KnowYourOptions.com for more information.

“We who serve alongside our military recognize the great sacrifice they and their families make each day,– Katherine Hammack, assistant secretary of the Army (Installations and Environment). “The initiative between Fannie Mae and the lending community recognizes their sacrifice and demonstrates our gratitude for those who face economic hardships as a result of their service. We are profoundly grateful for this heartwarming response from the lending community as they become partners in designing and implementing this initiative.”


About the author: Chris Birk writes about real estate and the mortgage industry for a host of sites and publications, from Lenderama and Bigger Pockets to the Huffington Post and Motley Fool. A former newspaper and magazine writer, he is also content director for a leading VA lender. Follow him on Google+.

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Posted in: Mortgages

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