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Mortgage Relief Options for Service Members

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Freddie Mac is committed to making mortgage relief and workout options available to service members and their families who are experiencing financial difficulty. If your mortgage is owned by Freddie Mac (visit our Loan Look-up tool to see if we own your loan) and you are a service member having difficulty with your mortgage payments – we have options to help.

Freddie Mac considers a distant employment transfer such as a Permanent Change of Station (PCS) to be a hardship. If you received PCS orders, you are eligible to be considered for alternative to foreclosure options offered by Freddie Mac, including a loan modification.

Moreover, if you are underwater on your mortgage but need to sell your property because of PCS orders and you originally purchased it before June 30, 2012, you will more easily qualify for a short sale without having to pay additional money to the servicer at closing.

Based on Freddie Mac's policies, your servicer will work with you to explore all alternatives to foreclosure and make every effort to find the best fit for you and your situation.

Servicemember's Civil Relief Act (SCRA)

As a service member, if you're finding it difficult to make timely mortgage payments, there are also several options that may be available through the SCRA to help you, such as:

• Forbearance and Relief from Foreclosure: If you are eligible, your servicer may not initiate or resume foreclosure proceedings for at least nine months after you are released from active duty, when the release occurs on or before December 31, 2012.
• Interest Rate Relief: If you are eligible, your interest rate on eligible mortgages will be capped at 6% per year during your period of active duty and for one year after active duty ends.

Steps to Get Started

• Reach out to your servicer if you need help with your mortgage. They can help determine whether you are eligible for protections that are available under SCRA or Freddie Mac's alternatives to foreclosure.
• Get informed and familiarize yourself with all of the options to help you avoid foreclosure.
• Be sure you are well organized and prepared for your conversation with your servicer.
• Learn how to identify and report mortgage fraud.

Additional Resources for Help

• USA Cares: Providing post-9/11 military families (all branches of service) with financial and advocacy support.
• VA Mortgage Assistance: If you have a VA loan, this site provides you with a list of resources that may assist the workout process.
• Army OneSource: A comprehensive resource for Army service members.
• Military OneSource: A comprehensive resource for every phase of military life including deployment, parenting, financial management, spouse employment, and more.
• National Military Families Association: Helping those that serve in the military, and their family members, gain access to education and financial benefits.