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Foreclosure Date Postponement Changes and Unemployment Forbearance

We talk a lot about short sales because they are still prevalent in today’s real estate market. Expectations are that they will remain prevalent at least for another few years.

That being said, we want to remind you of a few important items regarding short sales, so that if you or someone you know is in a distressed financial situation, you have the information at your disposal to help make decisions in avoiding foreclosure.

First up is the Unemployment Forbearance Plan as introduced by Freddie Mac (Federal Home Loan Mortgage Corporation). The Unemployment Forbearance Plan that requires mortgage service providers to provide up to six months relief for anyone whose financial hardship is affected due to unemployment. Relief can come in a forbearance (temporary relief of payment) or special reduction in interest rate or mortgage payment for a set period of time. In special circumstances, this program may be extended for up to one year on approved cases.

Another big change that has come from Freddie Mac is that they have changed the rules regarding postponement of foreclosure sale dates. The following comes directly from a bulletin they have issued to all service providers and real estate brokers:

Servicers must obtain Freddie Mac’s approval to postpone a foreclosure sale on any mortgage that is greater than 12 months delinquent.

In the past, even if a homeowner was more than 12 months delinquent, as long as a short sale had an offer in from a buyer and it was pending approval from the lender, a postponement of the foreclosure sale could usually happen even if the sale date was very close.

Under these new rules, Freddie Mac has made it tougher for homeowners who are more than 12 months delinquent to avoid a foreclosure sale UNLESS the short sale already has an approved offer from a buyer AND has been approved by the lender.

If you know you’re having trouble making your mortgage payments, or know that you can no longer make them because of a financial hardship, call us as soon as possible. We are experienced in handling situations like this with discretion, compassion, and have the skills to help you avoid foreclosure. However, the longer you wait, the tougher it is to make things happen. We are here to help. For more information, go to http://bringingyouhomescv.com, or call us directly at 661-290-3802 for a confidential consultation.

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