Freddie Mac Announces New Foreclosure Prevention Guidelines, Revisions
Government-sponsored enterprise Freddie Mac has announced a set of new loss mitigation and foreclosure prevention guidelines and revisions in Guide Bulletins 2014-19 and 2014-20 that include a new deeds-in-lieu of foreclosure incentive, increased foreclosure timelines, and additional foreclosure relief for service members and their dependents.
Freddie Mac is offering a supplemental incentive of up to $7,000 for new borrower evaluations for deeds-in-lieu of foreclosure that are conducted on or before December 1, 2015. Borrowers in Connecticut, District of Columbia, Illinois, Maryland, Massachusetts, New Jersey, New York, or Pennsylvania who complete a Freddie Mac standard deed-in-lieu of foreclosure transaction are eligible. The new deed-in-lieu borrower incentive is scheduled to go into effect on February 1, 2015, but servicers at Freddie Mac have been encouraged to implement the new incentive as early as November 14, 2014.
Foreclosure timelines have been increased in 47 jurisdictions for all foreclosure sales completed on or after November 1, 2014, as a result of Freddie Mac’s recent review of state foreclosure timelines. An updated list of Freddie Mac’s state foreclosure timelines can be found in Guide Exhibit 83.
As part of Freddie Mac’s commitment to active duty servicemembers, Freddie Mac is offering additional foreclosure relief to service members and their dependents. Foreclosure relief will be extended to mortgages while the service member is active for one year after military service ends when the borrower: 1) is a service member and the mortgaged property is the service member’s primary residence, regardless of when the mortgage loan was originated; 2) is a dependent of the service member and the mortgaged property is the primary residence of the service member or his or her dependent; 3) was a service member who died during active military service and the mortgaged property continues to be the primary residence for a dependent of the service member. Servicers can determine if a borrower is eligible for these benefits by checking Freddie Mac’s Mortgage Relief Options for Service Members web site.