 |
 |
 |
Washington Mutual reaches families in need using Freddie Mac tools and resourcesWorking together, Freddie Mac and its Servicers have helped more than 100,000 troubled borrowers avoid foreclosure and stay in their homes over the past two years. With the help of our tools and resources, one Freddie Mac Servicer, Washington Mutual, has had a great deal of success in reaching out to delinquent borrowers who need financial assistance in order to keep their home, and we're sharing some of their success stories and best practices this month. Treana Higginbotham, Vice President and Department Manager of Homeowner's Assistance at Washington Mutual, praises Freddie Mac's avoiding foreclosure tools and resources. "With changing industry trends, including an increase in the depreciating home values, Freddie Mac provides the workout options such as short sales and deeds in lieu, needed to help those who are facing delinquency due to uncontrollable hardships," Treana comments. Workout options, proactive borrower outreach, and more…Treana, along with Washington Mutual Loss Mitigation Negotiator Ann Stanonis, agree that Freddie Mac's workout options are key to helping troubled borrowers.According to Ann, "With Freddie Mac's short-term forbearance option, we're making sure borrowers have time to minimize their extra debt and gain financial stability so that they are successful with a workout option or loan modification.Many borrowers incur excessive debt because they live off of their credit cards while job hunting, and short-term forbearance option gives them time to decrease their debt and increase their income." In addition, Freddie Mac has partnered with a non-profit counseling agency, who we refer borrowers to for assistance in decreasing their excess unsecured debt. Ann continues, "As the number of borrowers falling behind on their mortgage payments continue to climb, long-term financial stability is essential to the overall success of the homeowner." For Freddie Mac Servicers, there are more than just workout options available to assist delinquent borrowers.Sometimes, because of embarrassment or not knowing there is help available, delinquent borrowers will not ask for assistance.Because of this, many servicers engage in proactive borrower contact.Treana and Ann find that using Freddie Mac's Manager Series in GoldWorks® to pull reports makes their task easier and more efficient.These reports provide loan level detail of loans in various stages of delinquency for their campaigns. In addition, Washington Mutual identifies geographic areas with the highest delinquency rates, and reaches out to borrowers in those areas.Treana states, "We take the initiative to be 'hands on' with these borrowers.We are visiting the areas to educate borrowers not just on housing debt, but on the overall big picture of homeownership and long-term financial stability." With the help of Freddie Mac, you can make sure your borrowers are aware of all the options that may be available to them if they have difficulty making their mortgage payment by using our Avoiding Foreclosure promotional materials.The information in these materials is available in both English and Spanish. Taking advantage of best practices to help borrowers in distressWashington Mutual developed their own best practices for helping borrowers avoid foreclosure. Ann and Treana firmly believe education is key, that you need to be persistent with proactive borrower outreach, and that it is important to treat all borrowers with dignity and respect. When a particular delinquency situation makes a viable foreclosure alternative elusive, Treana and Ann brainstorm with their co-workers and Freddie Mac representatives to find a way to help.Treana says “We're in it to save homes, not just act as a collector.”She suggests, “Do not be afraid to ask the borrower underlying questions to get to the root of the default. This way we are able to provide the best workout option for the borrowers needs.Also, Freddie Mac is there to help, and their representatives are very knowledgeable when we need guidance or suggestions on a mortgage that needs special attention." For example, one homeowner was caught off guard by a sudden change that caused him to lose the financial stability he once had. Washington Mutual was there to help and went the extra mile to find a solution. The homeowner lived with his ailing mother in her home. When his mother passed away, the homeowner did not have a job, was not collecting unemployment and could not make mortgage payments to remain in his family home.Luckily, a friend suggested he contact Washington Mutual for assistance. Washington Mutual creatively placed the homeowner on a long-term forbearance plan making partial payments, with approval from Freddie Mac, while he completed a one-year job-training program.Ultimately, the man completed his training in nine months, obtained gainful employment and Washington Mutual was then able to process a modification assumption so the mortgage for his family home was in his name. That was two years ago. The gentleman has held a job and paid his mortgage on time ever since. It's good to know there are options that can aid people who find themselves in situations such as this. Ann states, "Freddie Mac is one of the few institutions that allows long-term forbearances for extreme cases." Freddie Mac's long-term forbearance workout option reduces or suspends monthly mortgage payments for a period of 4 to 12 months from the date of the agreement, when one or more of the following conditions exist:
For more information on long-term forbearance:
Freddie Mac, together with Washington Mutual, is working hard to better serve borrowers in need of homeowner assistance.Take advantage of the avoiding foreclosure tools and resources Freddie Mac provides today and help keep borrowers in their homes they would like to keep. Freddie Mac:
|
|
||
|
|
|