WASHINGTON, Oct 30 (Reuters) - Fannie Mae and Freddie Mac on Tuesday extended their disaster-relief policies to borrowers whose homes were damaged by Hurricane Sandy.

The aid applies to property owners living in towns and cities along the eastern United States that have been declared disaster areas by President Barack Obama.

Millions of people were left reeling in the aftermath of the super storm that made landfall on Monday and resulted in flooding, wide-spread power outages and deaths.

The historic storm caused government offices and U.S. financial markets to close on Monday and Tuesday. Preliminary estimates show that damage could exceed $10 billion.

"Freddie Mac has authorized the nation's mortgage servicers to provide a full range of mortgage-relief options to affected borrowers with mortgages owned or guaranteed by Freddie Mac," said Tracy Mooney, senior vice president of single-family servicing and real estate owned at Freddie Mac.

One of the options for people with Freddie Mac-backed loans is forbearance on mortgage payments for up to one year. The government-backed mortgage lender has told its servicers to offer forbearance, which lets a borrower reduce or suspend payments on a loan for a specific amount of time. This is done on a case by case basis.

Freddie Mac said it "strongly encourages" servicers to help affected borrowers with Freddie Mac-owned loans by suspending foreclosure and eviction proceedings for up to 12 months, waiving assessments of penalties or late fees against borrowers with disaster-damaged homes and not reporting forbearance or delinquencies caused by the disaster to credit bureaus.

Fannie Mae said its policy with mortgage servicers, updated in 2009, allows borrowers to enter forbearance for up to 90-days. Fannie Mae said servicers were reminded of the existing guidelines on disaster relief in light of the recent storm.

Fannie and Freddie, the two largest sources of housing money, were taken over by the government in September 2008 during the financial crisis.

The government-controlled companies do not directly make loans. Instead, they buy mortgages from lenders and repackage them as securities for investors.

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  • A 168-foot water tanker, the John B. Caddell, sits on the shore Tuesday morning, Oct. 30, 2012 where it ran aground on Front Street in the Stapleton neighborhood of New York's Staten Island as a result of superstorm Sandy. (AP Photo/Sean Sweeney)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    NEW YORK, NY - OCTOBER 30: Workers clean up a fallen tree October 30, 2012 in New York City. The storm has claimed at least 33 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City, with wide spread power outages and significant flooding in parts of the city. (Photo by Allison Joyce/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    NEW YORK, NY - OCTOBER 30: Workers clean up a fallen tree October 30, 2012 in New York City. The storm has claimed at least 33 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City, with wide spread power outages and significant flooding in parts of the city. (Photo by Allison Joyce/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    NEW YORK, NY - OCTOBER 30: Workers clean up a fallen tree October 30, 2012 in New York City. The storm has claimed at least 33 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City, with wide spread power outages and significant flooding in parts of the city. (Photo by Allison Joyce/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    NEW YORK, NY - OCTOBER 30: Workers clean up a fallen tree October 30, 2012 in New York City. The storm has claimed at least 33 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City, with wide spread power outages and significant flooding in parts of the city. (Photo by Allison Joyce/Getty Images)

  • The passenger terminal for a ferry that takes passengers to the Statue of Liberty,in Battery Park is in shambles from superstorm Sandy, in New York, Tuesday, Oct. 30, 2012. (AP Photo/Richard Drew)

  • Cars are submerged at the entrance to a parking garage in New York's Financial District in the aftermath of superstorm Sandy, Tuesday, Oct. 30, 2012. New York City awakened Tuesday to a flooded subway system, shuttered financial markets and hundreds of thousands of people without power a day after a wall of seawater and high winds slammed into the city, destroying buildings and flooding tunnels. (AP Photo/Richard Drew)

  • A tree felled by Hurricane Sandy, crushes a car in New York's FInancial District, Tuesday, Oct. 30, 2012. New York City awakened Tuesday to a flooded subway system, shuttered financial markets and hundreds of thousands of people without power a day after a wall of seawater and high winds slammed into the city, destroying buildings and flooding tunnels. (AP Photo/Richard Drew)

  • Workers in a deli near New York's Financial District survey Hurricane Sandy damge to their establishment, Tuesday, Oct. 30, 2012. (AP Photo/Richard Drew)

  • Reece Hiner ,11, take a look at a destroyed home in Pasadena, Md., Tuesday, Oct. 30, 2012, where the homeowner was killed overnight when a tree fell on his home during superstorm Sandy. Neighbor John Brown identified the victim as Donald Cannata Sr. (AP Photo/Jose Luis Magana)

  • Workers clear debris outside the Consolidated Edison power sub-station on 14th Street, Tuesday, Oct. 30, 2012, in New York. Hurricane Sandy marched slowly inland, leaving millions without power or mass transit, with huge swatches of the nation's largest city unusually vacant and dark. New York was among the hardest hit, with its financial heart in Lower Manhattan shuttered for a second day and seawater cascading into the still-gaping construction pit at the World Trade Center (AP Photo/ John Minchillo)

  • Onlookers take photographs of two cars that collided during flooding outside the Consolidated Edison power sub-station on 14th Street, Tuesday, Oct. 30, 2012, in New York. Hurricane Sandy marched slowly inland, leaving millions without power or mass transit, with huge swatches of the nation's largest city unusually vacant and dark. New York was among the hardest hit, with its financial heart in Lower Manhattan shuttered for a second day and seawater cascading into the still-gaping construction pit at the World Trade Center (AP Photo/ John Minchillo)

  • A patient is wheeled to an ambulance in the rain during an evacuation of New York University Tisch Medical, Tuesday, Oct. 30, 2012, in New York. Hurricane Sandy marched slowly inland, leaving millions without power or mass transit, with huge swatches of the nation's largest city unusually vacant and dark. New York was among the hardest hit, with its financial heart in Lower Manhattan shuttered for a second day and seawater cascading into the still-gaping construction pit at the World Trade Center. (AP Photo/ John Minchillo)

  • As flood waters recede, a boat and other wreckage litter a street in the aftermath of superstorm Sandy, Tuesday, Oct. 30, 2012, in Massapequa, N.Y. (AP Photo/Jason DeCrow)

  • A utility crew works to restore power in Andover, Mass. Tuesday, Oct. 30, 2012 after a large tree fell into lines due to Monday's hybrid superstorm Sandy. Sandy, the storm that made landfall Monday, caused multiple fatalities, halted mass transit and cut power to more than 6 million homes and businesses. (AP Photo/Elise Amendola)

  • A worker uses a chainsaw to cut up a large tree near homes in Andover, Mass. Tuesday, Oct. 30, 2012 where it fell into power lines due to Monday's hybrid superstorm Sandy. Sandy, the storm that made landfall Monday, caused multiple fatalities, halted mass transit and cut power to more than 6 million homes and businesses. (AP Photo/Elise Amendola)

  • A cyclist rides past a wind-blown traffic sign in downtown Washington near the still under construction Smithsonian National Museum of African American History and Culture, rear, Tuesday, Oct. 30, 2012, on the morning after Hurricane Sandy passed through the nation's capital. (AP Photo/J. Scott Applewhite)

  • Sand and debris cover a part of town near the ocean in Atlantic City, N.J., Tuesday, Oct. 30, 2012. Sandy, the storm which was downgraded from a hurricane just before making landfall, caused multiple fatalities, halted mass transit and cut power to more than 6 million homes and businesses. (AP Photo/Seth Wenig)

  • Glenn Heartley

    Glenn Heartley works on his car in a creek in Chincoteague, Va., Tuesday, Oct. 30, 2012. Heartley and his wife were swept off the road into a shallow creek when superstorm Sandy struck the area Monday. (AP Photo/Steve Helber)

  • Glenn Heartley

    Glenn Heartley watches floodwaters from superstorm Sandy pour out of his car after it was pulled out of a creek in Chincoteague, Va., Tuesday, Oct. 30, 2012. Heartley and his wife were swept off the road into a shallow creek during Monday's storm. (AP Photo/Steve Helber)

  • Arlene O'Dell stands in front of her home where several trees fell, one crushing her car on Barberry Lane, as a result of the powerful winds and rain of Hurricane Sandy on Tuesday, Oct., 30, 2012, in Sea Cliff, N.Y. (AP Photo/Kathy Kmonicek)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    WASHINGTON - OCTOBER 30: Men survey a large tree that fell during Hurricane Sandy on October 30, 2012 in Washington, DC. The storm has claimed at least 16 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City, with wide spread power outages and significant flooding in parts of the city. (Photo by Brendan Hoffman/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    NEW YORK, NY - OCTOBER 30: Ramiro Arcos sweeps debris from a storm drain while cleaning up damage caused by Hurricane Sandy on October 30, 2012 in the Financial District of New York, United States. The storm has claimed at least 16 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City. (Photo by Andrew Burton/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    NEW YORK, NY - OCTOBER 30: People pass a fallen tree October 30, 2012 in the Battery Park neighborhood of Manhattan, New York. The storm has claimed at least 16 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City. (Photo by Allison Joyce/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    WASHINGTON - OCTOBER 30: A police officer helps to remove a tree branch brought down by Hurricane Sandy from a car on October 30, 2012 in Washington, DC. The storm has claimed at least 16 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City, with wide spread power outages and significant flooding in parts of the city. (Photo by Brendan Hoffman/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    NEW YORK, NY - OCTOBER 30: A crew works to pump water from the basement of the Verizon Building October 30, 2012 in lower Manhattan, New York. The storm has claimed at least 16 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City. (Photo by Allison Joyce/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    ALEXANDRIA, VA - OCTOBER 30: Pedestrians navigate through flooding on King Street following Hurricane Sandy's track through the nation's capital October 30, 2012 in Alexandria, Virginia. The storm has claimed at least 16 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City. (Photo by Win McNamee/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    NEW YORK, NY - OCTOBER 30: Water floods the Plaza Shops in the wake of Hurricane Sandy, on October 30, 2012 in Manhattan, New York.The storm has claimed at least 16 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City. (Photo by Allison Joyce/Getty Images)

  • Waves pound a lighthouse on the shores of Lake Erie Tuesday, Oct. 30, 2012, near Cleveland. High winds spinning off the edge of superstorm Sandy took a vicious swipe at northeast Ohio early Tuesday, uprooting trees, cutting power to hundreds of thousands, closing schools and flooding parts of major commuter arteries that run along Lake Erie. (AP Photo/Tony Dejak)

  • US-WEATHER-STORM-SANDY

    People look at destruction in South Street Seaport October 30, 2012 as New Yorkers clean up the morning after Hurricane Sandy. The storm left large parts of New York City without power and transportation. The death toll from superstorm Sandy has risen to 16 in the mainland United States and Canada, and was expected to climb further as several people were still missing, officials said Tuesday. Connecticut, New York, New Jersey, Maryland, Pennsylvania, West Virginia and North Carolina reported 15 dead from the massive storm system, and Toronto police said a Canadian woman was killed by flying debris. AFP PHOTO / TIMOTHY A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)

  • US-WEATHER-STORM-SANDY

    People look at destruction in South Street Seaport October 30, 2012 as New Yorkers clean up the morning after Hurricane Sandy made landfall. The storm left large parts of New York City without power and transportation. The death toll from superstorm Sandy has risen to 16 in the mainland United States and Canada, and was expected to climb further as several people were still missing, officials said Tuesday. Connecticut, New York, New Jersey, Maryland, Pennsylvania, West Virginia and North Carolina reported 15 dead from the massive storm system, and Toronto police said a Canadian woman was killed by flying debris. AFP PHOTO / TIMOTHY A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    WASHINGTON - OCTOBER 30: A television news camera man films damage from Hurricane Sandy on October 30, 2012 in Washington, DC. The storm has claimed at least 16 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City, with wide spread power outages and significant flooding in parts of the city.(Photo by Brendan Hoffman/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    WASHINGTON - OCTOBER 30: Sam Rigby walks by a downed tree which fell and grazed his house and hit his neighbor's house during Hurricane Sandy on October 30, 2012 in Washington, DC. The storm has claimed at least 16 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City, with wide spread power outages and significant flooding in parts of the city. (Photo by Brendan Hoffman/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    WASHINGTON - OCTOBER 30: (L-R) Sam Rigby, Adrienne Scherger, and Pamela Benson survey damage from Hurricane Sandy on October 30, 2012 in Washington, DC. The storm has claimed at least 16 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City, with wide spread power outages and significant flooding in parts of the city.. (Photo by Brendan Hoffman/Getty Images)

  • US-WEATHER-STORM-SANDY

    People look at destruction in South Street Seaport October 30, 2012 as New Yorkers clean up the morning after Hurricane Sandy made landfall. The storm left large parts of New York City without power and transportation. The death toll from superstorm Sandy has risen to 16 in the mainland United States and Canada, and was expected to climb further as several people were still missing, officials said Tuesday. Connecticut, New York, New Jersey, Maryland, Pennsylvania, West Virginia and North Carolina reported 15 dead from the massive storm system, and Toronto police said a Canadian woman was killed by flying debris. AFP PHOTO / TIMOTHY A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)

  • US-WEATHER-STORM-SANDY

    People look at destruction in South Street Seaport October 30, 2012 as New Yorkers clean up the morning after Hurricane Sandy made landfall. The storm left large parts of New York City without power and transportation. The death toll from superstorm Sandy has risen to 16 in the mainland United States and Canada, and was expected to climb further as several people were still missing, officials said Tuesday. Connecticut, New York, New Jersey, Maryland, Pennsylvania, West Virginia and North Carolina reported 15 dead from the massive storm system, and Toronto police said a Canadian woman was killed by flying debris. AFP PHOTO / TIMOTHY A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)

  • US-WEATHER-STORM-SANDY

    People look at destruction in South Street Seaport October 30, 2012 as New Yorkers clean up the morning after Hurricane Sandy made landfall. The storm left large parts of New York City without power and transportation. The death toll from superstorm Sandy has risen to 16 in the mainland United States and Canada, and was expected to climb further as several people were still missing, officials said Tuesday. Connecticut, New York, New Jersey, Maryland, Pennsylvania, West Virginia and North Carolina reported 15 dead from the massive storm system, and Toronto police said a Canadian woman was killed by flying debris. AFP PHOTO / TIMOTHY A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)

  • US-WEATHER-STORM-SANDY

    People look at destruction in South Street Seaport October 30, 2012 as New Yorkers clean up the morning after Hurricane Sandy made landfall. The storm left large parts of New York City without power and transportation. The death toll from superstorm Sandy has risen to 16 in the mainland United States and Canada, and was expected to climb further as several people were still missing, officials said Tuesday. Connecticut, New York, New Jersey, Maryland, Pennsylvania, West Virginia and North Carolina reported 15 dead from the massive storm system, and Toronto police said a Canadian woman was killed by flying debris. AFP PHOTO / TIMOTHY A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)

  • US-WEATHER-STORM-SANDY

    Onlookers watch as a construction crane dangles October 30, 2012 atop a 1.5 billion USD luxury high-rise in midtown Manhattan after collapsing in high winds as New Yorkers assess damage the morning after Hurricane Sandy made landfall. The death toll from superstorm Sandy has risen to 16 in the mainland United States and Canada, and was expected to climb further as several people were still missing, officials said Tuesday. Connecticut, New York, New Jersey, Maryland, Pennsylvania, West Virginia and North Carolina reported 15 dead from the massive storm system, and Toronto police said a Canadian woman was killed by flying debris. AFP PHOTO / TIMOTHY A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)

  • US-WEATHER-STORM-SANDY

    Onlookers watch as a construction crane dangles October 30, 2012 atop a 1.5 billion USD luxury high-rise in midtown Manhattan after collapsing in high winds as New Yorkers assess damage the morning after Hurricane Sandy made landfall. The death toll from superstorm Sandy has risen to 16 in the mainland United States and Canada, and was expected to climb further as several people were still missing, officials said Tuesday. Connecticut, New York, New Jersey, Maryland, Pennsylvania, West Virginia and North Carolina reported 15 dead from the massive storm system, and Toronto police said a Canadian woman was killed by flying debris. AFP PHOTO / TIMOTHY A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)

  • US-WEATHER-STORM-SANDY

    The New York Stock Exchange on October 30, 2012 as New Yorkers clean up the morning after Hurricane Sandy made landfall. The death toll from superstorm Sandy has risen to 16 in the mainland United States and Canada, and was expected to climb further as several people were still missing, officials said Tuesday. Connecticut, New York, New Jersey, Maryland, Pennsylvania, West Virginia and North Carolina reported 15 dead from the massive storm system, and Toronto police said a Canadian woman was killed by flying debris. AFP PHOTO / TIMOTHY A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    ATLANTIC CITY, NJ - OCTOBER 30: Kirk Dooley of the Atlantic City engineer's office inspects the area where a 2000-foot section of the 'uptown' boardwalk was destroyed by flooding from Hurricane Sandy on October 30, 2012 in Atlantic City, New Jersey. The storm has claimed at least 16 lives in the United States, and has caused massive flooding across much of the Atlantic seaboard. US President Barack Obama has declared the situation a 'major disaster' for large areas of the US East Coast including New York City. (Photo by Mario Tama/Getty Images)

  • East Coast Begins To Clean Up And Assess Damage From Hurricane Sandy

    NEW YORK, NY - OCTOBER 30: Con Edison employees monitor the drainage of water being pumped out of Seven World Trade Center, caused by Hurricane Sandy, on October 30, 2012 in the Financial District of New York, United States. The storm has claimed at least 16 lives in the United States, and has caused massive flooding accross much of the Atlantic seaboard. (Photo by Andrew Burton/Getty Images)

  • Eileen Blair, second from right, and Keith Klein, right, assess the damage caused by a fire at Breezy Point, in the New York City borough of Queens Tuesday, Oct. 30, 2012, in New York. The fire destroyed between 80 and 100 houses Monday night in the flooded neighborhood. More than 190 firefighters have contained the six-alarm blaze fire, but they are still putting out some pockets of fire. (AP Photo/Frank Franklin II)

  • Keith Klein, right, and Eileen Blair assess the damage caused by a fire in the New York City borough of Queens, Tuesday, Oct. 30, 2012. The fire destroyed between 80 and 100 houses Monday night in the flooded neighborhood. More than 190 firefighters have contained the six-alarm blaze fire, but they are still putting out some pockets of fire. (AP Photo/Frank Franklin II)

  • People assess damage caused by a fire at Breezy Point in the New York City borough of Queens Tuesday, Oct. 30, 2012. The fire destroyed between 80 and 100 houses Monday night in an area flooded by the superstorm that began sweeping through earlier. (AP Photo/Frank Franklin II)

  • A man takes photos of a tree leaning against a house Tuesday, Oct. 30, 2012, in Bay Ridge of the Brooklyn borough of New York in the aftermath of superstorm Sandy. New York City awakened Tuesday to a flooded subway system, shuttered financial markets and hundreds of thousands of people without power a day after a wall of seawater and high winds slammed into the city, destroying buildings and flooding tunnels. (AP Photo/David Boe)

  • Residents assess damage caused by a fire at Breezy Point, in the New York City borough of Queens Tuesday, Oct. 30, 2012, in New York. The fire destroyed between 80 and 100 houses Monday night in the flooded neighborhood. More than 190 firefighters have contained the six-alarm blaze fire, but they are still putting out some pockets of fire. (AP Photo/Frank Franklin II)

  • Trees lie fallen across parked cars in the Brooklyn borough of New York the morning after superstorm Sandy made landfall, Tuesday, Oct. 30, 2012. A record storm surge that was higher than predicted along with high winds damaged the electrical system and plunged millions of people into darkness. Utilities say it could be up to a week before power is fully restored. (AP Photo/Mark Lennihan)

  • A woman stops to photograph a tree that has fallen across parked cars in the Brooklyn borough of New York the morning after superstorm Sandy struck, Tuesday, Oct. 30, 2012. A record storm surge that was higher than predicted along with high winds damaged the electrical system and plunged millions of people into darkness. Utilities say it could be up to a week before power is fully restored. (AP Photo/Mark Lennihan)

  • Kathy Jones

    Kathy Jones calls to let her family know she's ok after damage caused by flooding destroyed her home at Breezy Point in the New York City borough of Queens, Tuesday, Oct. 30, 2012, in New York. A fire destroyed between 80 and 100 houses Monday night in the flooded neighborhood. More than 190 firefighters have contained the six-alarm blaze fire, but they are still putting out some pockets of fire. (AP Photo/Frank Franklin II)