Freddie Mac Mortgage Help
Freddie Mac Loss Mitigation Options — What Delinquent Borrowers Can Request
Freddie Mac's Seller/Servicer Guide requires servicers to evaluate delinquent borrowers for every available option before foreclosing. Submitting a complete application before the foreclosure referral date legally halts the process during review.
Freddie Mac Loss Mitigation — Option by Option
Forbearance Plan
Your servicer reduces or suspends your monthly payment for a defined period. Missed payments are not forgiven — they are addressed afterward through a deferral, repayment plan, or modification.
Who qualifies: Borrowers experiencing a temporary hardship (job loss, illness, divorce, natural disaster)
DIY Steps:
1.Call your servicer and request a forbearance plan in writing
2.Describe your hardship and provide documentation (termination letter, hospital bill, etc.)
3.Confirm the plan terms, length, and what happens at the end in writing
Repayment Plan
You repay missed amounts by adding a portion to each regular monthly payment over 3–12 months. Freddie Mac servicers can approve repayment plans without requiring the full loss mitigation application package.
Who qualifies: Borrowers who have recovered from a short-term hardship and have income above their normal payment
DIY Steps:
1.Contact your servicer once your income has stabilized
2.Request a formal repayment plan and negotiate the monthly add-on amount
3.Get the plan in writing — a single missed repayment payment often voids the agreement
Payment Deferral
Freddie Mac's Payment Deferral moves past-due amounts to the end of the loan as a non-interest-bearing balance. Your regular payment stays unchanged. The deferred amount is collected at payoff, sale, or refinance.
Who qualifies: Borrowers who are 2–12 months delinquent and can now resume regular payments
DIY Steps:
1.Request payment deferral consideration from your servicer by name
2.Confirm your hardship has resolved and you can make regular payments going forward
3.Execute the deferral agreement — no trial period required
Flex Modification
The Freddie Mac Flex Modification reduces your monthly payment by at least 20% by extending your term to up to 40 years, reducing your interest rate, and/or deferring principal. It is the primary modification program for Freddie Mac loans.
Who qualifies: Borrowers with a permanent hardship who are 60+ days delinquent or facing imminent default
DIY Steps:
1.Submit a complete loss mitigation application (Uniform Borrower Assistance Form) to your servicer
2.Include hardship letter, two months of pay stubs, two months of bank statements, and most recent tax return
3.Complete a 3-month trial payment period at the modified amount before the modification is finalized
Enhanced Relief Refinance
The Freddie Mac Enhanced Relief Refinance (FMERR) allows high-LTV borrowers to refinance to a lower rate regardless of home value. If you can afford your current payment but want a permanent reduction, this is the path — but you must be current.
Who qualifies: Borrowers who are current on payments but have little or no equity and cannot qualify for a standard refinance
DIY Steps:
1.Confirm your loan is Freddie Mac via the lookup tool
2.Contact any Freddie Mac-approved lender — not only your current servicer
3.You must be current on your mortgage (no 30-day lates in the past 6 months)
Short Sale
Freddie Mac approves a sale for less than the outstanding balance and waives the deficiency. Relocation assistance of up to $3,000 may be available. A short sale is reported as "settled for less than full amount" — far less damaging than a completed foreclosure.
Who qualifies: Borrowers who owe more than the home is worth and cannot afford to keep it
DIY Steps:
1.Submit a hardship letter and short sale request to your servicer
2.Your servicer will order a Broker Price Opinion and set a minimum net proceeds floor
3.List the property and submit each offer for servicer and Freddie Mac approval before accepting
Deed-in-Lieu of Foreclosure
You transfer the deed to your servicer in exchange for full release of the mortgage debt. Freddie Mac may provide up to $3,000 in relocation assistance. Requires clear title — all subordinate liens must be resolved first.
Who qualifies: Borrowers who cannot sell the property after a good-faith marketing effort
DIY Steps:
1.Request deed-in-lieu after documenting 90+ days of marketing with no viable offers
2.Clear any junior liens or obtain subordination agreements
3.Execute the deed transfer and vacate the property — confirm debt release in writing
Freddie Mac Mortgage Help — Frequently Asked Questions
How do I find out if my mortgage is owned by Freddie Mac?
Use the Freddie Mac Loan Lookup tool at myhome.freddiemac.com/lookup. Enter your address — no login or personal information required. If Freddie Mac owns your loan, you qualify for Freddie Mac-specific loss mitigation options.
What is a Freddie Mac Flex Modification?
The Freddie Mac Flex Modification reduces your monthly principal and interest payment by at least 20% by extending your loan term (up to 40 years), reducing your interest rate, and/or deferring a portion of the unpaid principal as a non-interest-bearing balloon balance due at maturity or payoff.
What is a Freddie Mac payment deferral?
A Freddie Mac payment deferral moves past-due payments (up to 12 months) to the end of your loan as a non-interest-bearing amount. Your regular monthly payment does not change. The deferred balance is due when you sell, refinance, or pay off the loan.
Can my servicer foreclose while my loss mitigation application is pending?
No. Freddie Mac Single-Family Seller/Servicer Guide prohibits servicers from referring a loan to foreclosure or proceeding with a foreclosure sale while a complete loss mitigation application is under review. Submitting a complete application before the foreclosure referral date creates a legal hold on the process.
What is the Freddie Mac Borrower Help Center?
Freddie Mac operates a Borrower Help Center network of HUD-approved housing counselors who provide free, independent advice to borrowers with Freddie Mac loans. Call 1-800-FREDDIE (1-800-373-3343) to be connected to a counselor in your area.
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