The high unemployment rate can be directly correlated to
high foreclosure rates and in their effort to help the housing market Freddie
Mac has decided to extend loan forbearance for the unemployed.
Starting on February 1st homeowners who are unemployed
will be allowed to skip their monthly mortgage payments for six months and with
Freddie Mac’s approval they will be given an additional six months forbearance
if needed. This is one method to help curtail the burgeoning number of
foreclosures weighing on the housing market.
Every homeowner can fight to keep their homes with the help
of a foreclosure attorney, but for
underwater homeowners there has been little relief. In order to have the
principle on their loans reduced they must default on their loans fists.
Underwater homeowners may also get a break.
Consumer advocates have long stated that people who owe more
than their homes are worth need some assistance as well. Many of these
underwater homeowners have chosen to walk away from their homes, called a strategic
default, instead of apply for a mortgage modification with the help of a foreclosure lawyer.
Freddie Mac and
Fannie Mae, who hold half of the country’s mortgages, may consider writing down
loan principles to reflect current home values. This would help keep numerous
foreclosed properties out of the market.
Before an unemployed or underwater homeowner decides to give
up their homes they should consult with a foreclosure attorney to see what they can do to avoid foreclosure.
