MCCLEAN, Va. — Freddie Mac has ordered servicers to suspend foreclosures on properties with Freddie Mac-owned mortgages in areas declared a disaster because of damage caused by Hurricane Ike in Texas and Louisiana.
"Freddie Mac is taking this step because the extensive damage Hurricane Ike caused has made it difficult for our servicers to get the information they need to make case-by-case decisions about forbearance or other workout options," said Ingrid Beckles, vice president of servicing and asset management at Freddie Mac.
The suspension began Friday and ends Dec. 31. It includes mortgages that were in default prior to Hurricane Ike.
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After the suspension ends, servicers will be required to consider individual circumstances in determining whether additional foreclosure relief should be extended or whether to proceed with foreclosure.
FHA declared a 90-day moratorium on foreclosures in September in several counties in Texas and several parishes in Louisiana because of Hurricane Ike.
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