Fannie Mae Offering More Relief for Military Families

by Levi Newman on October 14, 2010

After a plea to lenders to help Gulf Oil Spill veteran victims with their mortgages, Fannie Mae is now offering more mortgage relief to military families afflicted with other “unique challenges.”

“No family impacted by a death or injury in the line of duty should have to face the additional burden of foreclosure as a result of the hardship,” Jeff Hayward, senior vice president of Fannie Mae’s National Servicing Organization, said in a news release. “We want to do all that we can to provide support to these families at a time of need as we honor their sacrifices and service to our country.”

On Aug. 1, Fannie Mae and the Armed Forces began aiding men and women with families who have lost a spouse due to war.  Borrowers in this situation will be allowed to skip up to six months of payments. The firm also plans to not report delinquent payments to credit bureaus during the six months.

Other circumstances that would qualify a family for such assistance would be the injury of a spouse, or the need to relocate due to drywall problems in homes, according to a New York Times article.

In a move to organize the process, borrowers must first get permission from their servicers and fill out the proper paperwork that thoroughly explains the family’s newfound hardships.

In addition, the company has a special hotline, (877)-MIL-4566, for service members. Borrowers can call for guidance and assistance regarding their mortgage. They also have a website which lists information about the forbearance at  KnowYourOptions.com.

In the meanwhile, the firm and the Armed Forces continue to urge other lenders in the real estate community to do what they can to support service families.

“The initiative between Fannie Mae and the lending community recognizes their sacrifice and demonstrates our gratitude for those who face economic hardships as a result of their service,” Katherine Hammack, assistant secretary of the Army, said. “We are profoundly grateful for this heartwarming response from the lending community as they become partners in designing and implementing this initiative.”

Photo thanks to Photographical Evidence under creative common license on Flickr.

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