Monday, July 1, 2013

New Foreclosure Modification Program If You're 90 Days or More Behind

Last March, the Federal Housing Finance Agency announced a new foreclosure avoidance program that starts today, July 1st.  From now until August 1, 2015, borrowers whose mortgages are owned or guaranteed by Fannie Mae or Freddie Mac may be eligible for a mortgage modification, if : 1) they have a firsr-lien mortgage that is at least 12 months old, and 2) are between 90 days and 24 months delinquent and 3) have a loan-to-value ratio equal to or greater than 80%.  It's the "Streamlined Modification Initiative." 

Unlike the hold HAMP program, borrowers do not have to prove financial, income and hardship qualifications.  Mortage servicers are required to identify eligible mortgage owners and send a Streamlined Modification Solicitation Offers to them.  If they can make the new payments for a trial period of 3 months, they may have their payments permanently changed. 

Of course, as this NOLO page points out, if you can submit documentation of financial hardship, you may get a better deal.  For more information on foreclosure prevention, try another NOLO page.  Here's more information from the Freddie Mac page. 

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