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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, it is important that you talk to your servicer (the company to whom you make your monthly mortgage payment) about your challenges as soon as possible. Let them know right away that you are a service member. Your servicer can help determine whether you are eligible for protections that are available under the Servicemembers' Civil Relief Act (the SCRA) or Freddie Mac's alternatives to foreclosure.

As a service member, if you're finding it difficult to make timely mortgage payments, there are 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.

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

Act Now

• Reach out to your servicer if you are falling behind on your mortgage payments or are currently struggling to make them on time – they want to help you. Be sure you are well organized and prepared for your conversation.
• Get informed and familiarize yourself with all of the options to help you avoid foreclosure.
• If your loan is owned by Freddie Mac and you are behind on your monthly bills (including your mortgage), contact a Freddie Mac Borrower Help Center for free, confidential financial counseling.

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.

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