Fannie Mae and the U.S. Army have announced new initiatives to help service members who are struggling with their mortgage payments to avoid foreclosure. The effort includes a mortgage payment forbearance of up to six months where the death or injury of a service member on active duty causes a hardship for impacted military families with a mortgage obligation.

Fannie Mae has created a new toll-free hotline, 877-MIL-4566, and has set up a new website, www.KnowYourOptions.com/Military, for service members to receive guidance about their mortgage options and enlist assistance, and it is also distributing printed materials for distribution on military bases.

Fannie Mae states that it is possible help qualified service members and their families to receive forbearance of up to six months under its Unique Hardships guidelines, which may reduce or suspend the borrower's monthly payments for the specified period. Credit bureau reporting will be suspended during the forbearance period in order to minimize any derogatory impact.

SOURCE: Fannie Mae / By: Mortgage Orb