Freddie Mac Increases Incentives for Helping Borrowers Avoid Foreclosure

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Mortgage servicers who handle Freddie Mac-owned mortgages just got more incentive to help those borrowers who might be facing foreclosure.

Freddie announced yesterday that it is doubling the incentive it pays to servicers for each workout that helps keep a delinquent Freddie-owned mortgage out of foreclosure. Freddie will also begin reimbursing servicers for the cost of door-to-door outreach programs and offer more time to negotiate workouts in those states with fast foreclosure processes, including Tennessee, where the average time to complete a non-judicial foreclosure is 60 days.

Beginning today, servicers will be allowed up to 10 months from the due date of the last payment until a foreclosure sale will occur to seek aggressive and sustainable workout solutions for borrowers.

Posted by Scott Sherrin at 2:08 pm

One Response to “Freddie Mac Increases Incentives for Helping Borrowers Avoid Foreclosure”

  1. Valances Says:

    Even though we are told of instances of foreclosure in terms of statistics, to so many, it’s a story of a family member or friend that they know.

    I’m not sure who to blame - the owner who could’ve taken different actions to avoid foreclosure or the banks and government who do such a poor job of keeping homeowners informed with all their small-print info.

    It’s a spiral where everyone is chasing and blaming someone else. But one thing that we all can agree on in difficult times like this is that it’s a downward spiral that is collectively drowning us as a whole nation that once was prosperous and less wounded.

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