Freddie Mac Foreclosures

How can we keep you in your home?

Freddie Mac foreclosures are similar to Fannie Mae foreclosures in that the lender does not really want to foreclose and will do everything in their power to reinstate the loan if the homeowner can qualify.

A lot of work goes into approving a prospective homeowner for a Freddie Mac loan, and it is the policy to do whatever is possible to try and let the homeowner keep their home.

Freddie Mac is the commonly used nickname for the Federal Home Mortgage Corporation, which was created in 1970 as a competitor to Fannie Mae (the Federal National Mortgage Association) to prevent a monopoly.

Both are government sponsored enterprises (GSEs), with a line of credit direct from the Treasury and a lot of leeway for making loans to first time homebuyers, low income homebuyers, and various other applicants who do not qualify for homeownership through regular lenders.

This is called the secondary housing market, and together Freddie Mac and Fannie Mae control over 90% of it.

Unfortunately, many of these homeowners, when they hit hard times, assume all is lost and allow their homes to go into foreclosure without a fight. In fact, there are many avenues open to Freddie Mac mortgage holders, and the company has a vested interest in helping homeowners keep their homes and fulfill the terms of their mortgage. A lot of foreclosures looks bad on any lender's record, so there is incentive in keeping homeowners in their homes and paying their monthly mortgage obligation.

Foreclosure is a drawn out, expensive and complicated process for the lender, who in the end is saddled with a piece of real estate they must then try to upkeep and sell, possibly at far under market value.

Communication is the first step to stopping foreclosure - if you don't answer phone calls and letters, the lender can't help you keep your home. An attorney can help you weigh all your options and forestall foreclosure action as long as possible.

If the worst happens, there are still things that can be done to keep from being evicted; Freddie Mac often allows borrowers to remain in their homes as long as they pay rent, so all is not lost. Also, until foreclosure is final and the home is sold, most states still hold out hope for reinstatement of the loan. If the borrower can manage to obtain a new financing deal, they may be able to resume their mortgage under more favorable circumstances.

Homeowners who purchased homes through Freddie Mac may also qualify for forbearances, lower interest rates and special home loan modifications.

Financial difficulties should not mean automatic loss of one's home. Getting started early and contacting your lender as soon as you know you aren't going to be able to make payments is your best course of action if you really want to keep your home.

When negotiating refinancing options, loan modifications or repayment plans, it is advisable to consult an attorney familiar with the process used in Freddie Mac foreclosures. This will ensure that all possible avenues to avoid foreclosure are explored.

How does foreclosure work from Freddie Mac foreclosures

Mortgage loan modification from Freddie Mac foreclosures

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