Freddie Mac's Multifamily Division offers 90-days Forbearance to Borrowers with Apartment Buildings Affected by Hurricane Katrina
September 15, 2005
In an effort to help Multifamily Sellers/ Servicers and borrowers work through the aftermath of Hurricane Katrina, Freddie Mac's Multifamily Division will offer a 90-day moratorium on payments of principal and interest to borrowers whose properties are located in areas designated by FEMA as major disaster areas qualifying for individual assistance. Borrowers will be able to defer 90 days of principal and interest on each affected loan, and all principal and interest that would otherwise have been collected during this time will be payable at maturity without the accrual of any additional interest. No default interest or late charges will be accrued with respect to payments that would otherwise have been due. Borrowers who have properties in areas designated by FEMA as federal disaster areas who have not already been contacted should contact their Freddie Mac Seller/Servicer.
Source: Freddie Mac