September is National Preparedness Month

Are you Ready in Case of a Financial Emergency? 


MCLEAN, Va., Sept. 13  /PRNewswire/ -- September is National Preparedness Month and a good time to prepare homes and families for emergencies.  Along with first aid kits and food supplies for emergencies, it is important to prepare for urgent financial situations.

"Something as simple as a broken pipe under your home's foundation, or the temporary loss of a job, could leave you in financial straights, jeopardizing your home," said Dwight Robinson, senior vice president of Corporate Relations and Housing Outreach for Freddie Mac.  "Just as you would prepare emergency supplies for your home, you should be ready for emergency financial situations."

Freddie Mac offers the following tips for getting your home and family ready for financial emergencies.  The tips are from its CreditSmart(R) curriculum at http://www.freddiemac.com/CreditSmart.  The tips are available in Chinese, English, Korean, Spanish and Vietnamese.

  -- Expect the Unexpected -- From a minor plumbing problem to a tree
     falling in a storm, homeowners are likely to face the need for
     emergency funds.  Having savings set aside for such emergencies will
     help you through difficulty.  If you do not have any savings for
     emergencies, now is a good time to start.  Even a small amount from
     each paycheck set aside in a special savings account will help you
     avoid using your credit cards or a high-interest loan in an emergency.

  -- Property Maintenance -- One of the best defenses against unexpected
     emergencies is a well-maintained home.  Proper care of plumbing, roof,
     and heating and air conditioning systems will help them last longer.
     Keeping trees trimmed will lower the risk of limbs falling and damaging
     property.

  -- Get an Insurance Checkup -- As your life changes, so do your insurance
     needs.  When you get married or have a child, or when you buy a home,
     car or high-value item, you should re-evaluate your insurance and add
     coverage if needed.  In some areas, you should check your coverage for
     flood, earthquake or other disasters.  (The federal or state government
     administers some disaster policies, so check with your insurance
     company for eligibility and coverage limits.)  Also evaluate your
     family's health coverage.  An unexpected illness or injury can be a
     financial drain if you do not have adequate coverage.  If you do not
     have health insurance through your employer, you may be able to buy
     your own coverage, or you may qualify for public health benefits.

  -- Check your Credit -- An error on your credit report could put your
     financial future at risk, making it difficult to obtain low-interest
     credit cards or loans. Under the Fair Credit Reporting Act, you are
     entitled to review your credit report annually.  If you find an error,
     you have the right to correct it.  Call [phone] or visit
     http://www.annualcreditreport.com/ to request your free annual
     disclosure.

  -- Prevent Identity Theft -- Today, it is vital that you protect your
     personal information. To avoid being a victim of identity theft, review
     all your bank and credit card statements regularly.  If you spot any
     suspected fraud, notify your lender and get it resolved quickly.  Many
     local law enforcement agencies have identity theft bureaus to help you.

  -- If you Get Behind -- A real fear for many homeowners is falling into
     deep financial trouble and losing your home.  If you are in financial
     trouble, make your mortgage payment a priority.  Ask for help early in
     the process.  Explain your situation to your lender and ask for advice
     and assistance.  You can also speak to a trained credit or
     homeownership counselor who can advise you about your options. Typical
     loan workout options would include: reinstatement, forbearance, loan
     modification, and refinancing.  Visit http://www.hud.gov/ or call
     (800) 5696-4287 to find a housing counseling agency near you.



Freddie Mac's CreditSmart series was designed to provide valuable information to consumers about building and maintaining good credit, understanding steps to buying a home and protecting their investment. CreditSmart addresses common barriers to homeownership including language, lack of knowledge of the home buying process, unverifiable income and lack of credit.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters. For additional information about Freddie Mac, visit: http://www.freddiemac.com/. 

DATASOURCE: Freddie Mac



CONTACT:  Patti Boerger of Freddie Mac, [phone]



Web site:  http://www.freddiemac.com/ 

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