Mortgage Relief Options for Service Members
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 or the dependent of a service member having difficulty with your mortgage payments, your servicer will work with you to explore all opportunities for mortgage help.
Call your servicer if you are having difficulty with your mortgage and let them know you are a service member or the dependent of a service member. You can also call Freddie Mac's Military help line at 1-800-FREDDIE, selecting option #2 and then option #3.
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 mortgage relief options offered by Freddie Mac, including a loan modification.
If you are underwater on your mortgage but need to sell your property because you received PCS orders and you originally purchased the property before June 30, 2012, you will more easily qualify for a short sale or deed-in-lieu of foreclosure without having to pay additional money to the servicer at closing.
Servicemembers 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 during your period of military service and for 12 months after you are released from military service.
- 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.
To be eligible for the SCRA, you must be named as the borrower or co-borrower on the mortgage and have purchased your home before your period of military service. If you want to refinance your mortgage, we recommend that you discuss refinancing with a legal advisor to ensure there are no impacts to your SCRA protections.
If you are not eligible for the SCRA, Freddie Mac has extended mortgage relief benefits to service members and their dependents as part of our commitment to you and your family. This includes policies that:
- prohibit your servicer from initiating or resuming foreclosure proceedings during your military service and for 12 months after your service ends, and
- ensure your servicer will make every effort to help you with your mortgage.
It’s important to note that many states have passed laws that extend benefits to service members beyond the SCRA. These laws may also provide mortgage payment reduction, foreclosure relief and eviction forbearance.
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, state laws, or Freddie Mac's mortgage relief options.
- Get informed and familiarize yourself with all of the mortgage relief options.
- 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: Provides 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: Helps those that serve in the military, and their family members, gain access to education and financial benefits.
- The Consumer Financial Protection Bureau: Offers a special Office of Servicemember Affairs to assist service members with military-specific protections.
Tools & Resources
- CreditSmart® Online Training
- Get the Facts on Foreclosure
- Working with Your Lender
- Find a HARP Lender
- Avoiding Foreclosure
- Getting Back on Track After Foreclosure
Freddie Mac Borrower Help Centers
Freddie Mac Borrower Help Centers provide free, confidential financial counseling
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