Tuesday, July 2, 2013

Save Your Home from Foreclosure: Fannie Mae and Freddie Mac offer streamlined home loan modifications to home owners, effective July 1, 2013 - August 1, 2015


The Federal Housing Finance Agency ("FHFA") announced that, effective July 1, 2013, Fannie Mae and Freddie Mac mortgages will offer a new, simplified loan modification initiative to minimize losses and to help troubled borrowers avoid foreclosure and stay in their homes. 

Beginning July 1, servicers will be required to offer eligible borrowers who are at least 90 days delinquent on their mortgages an easy way to lower their monthly payments and modify their mortgages without requiring financial or hardship documentation.  It is called the "Streamlined Modification Initiative".  After making the three trial payments, the mortgage should be permanently modified with the lower payment.  The lower payments would be due to a lower interest rate and/or longer mortgage term, rather than a reduction to mortgage principal.  The homeowner must timely make each of the three trial- modification payments.

The program begins July 1, 2013 and ends August 1, 2015.

The loan must be owned or guaranteed by Fannie Mae or Freddie Mac.  Homeowners must be 90 days to 24- months (and no more) delinquent in mortgage payments, and have a first-lien mortgage that is at least 12 months old with a loan-to-value ratio equal to or greater than 80 %. That means you must have a first mortgage where the balance you owe is 80% or more of the value of your home and you must have taken out this mortgage at least twelve months ago, and be somewhere between 3 months and 24 months behind in your monthly mortgage payments.

Loans that have been modified at least two time previously are not eligible.  

For further information, dial 211 and ask to be placed with a Housing counselor.  Why?  The State of New Hampshire provides to its residents, at NO COST, the ability to work with a housing counselor to process a loan modification application.  Again, simply dial 211 and ask to be placed with a housing counselor to apply for a loan modification at no cost to you!

You can click here to see if your loan is owned or guaranteed by Fannie Mae or Freddie Mac.
Fannie Mae look up: 

For more information, click on the news releases below issued by the Federal Housing and Finance Agency:


1 comment:

  1. I appreciate all of the information that you have shared. Thank you for the hard work!

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