New guidelines from Fannie Mae followed similar guidelines from Freddie Mac on forbearance for homeowners that are unemployed and facing foreclosure. The loan servicer can grant six months forbearance without the GSE’s approval.
If the borrower is still unemployed Fannie Mae can approve an additional six months forbearance. After that the lender and borrower must consider other options.
The borrower is expected to repay the lost payments over a longer period. But in reality, in many cases the forbearance would simply amount to one year free rent.
This follows a similar program last summer for FHA loans and loan modifications.
Read more: http://www.nytimes.com/2012/01/12/business/unemployed-mortgage-holders-get-payment-extension.html