The Federal Housing Finance Agency (the agency created to oversee Fannie Mae and Freddie Mac) have just implemented a new process for obtaining a mortgage payment. The process, called “Streamlined Modification Initiative” stands to take the headache of extensive document requests and lost paperwork out of the mortgage modification process. However it is important to know that the process isn’t available for everyone. In order to qualify for the Streamlined Modification, a borrower must meet the following criteria:
- The loan must be 3 months to 24 months delinquent.
- The loan must be the first mortgage on the property
- The loan cannot have been modified two or more times already
- The loan-to-value ratio cannot be greater than 80%. (This means that if a home is worth $100,000, the loan balance cannot be greater than $80,000).
- The loan must be owned by Fannie Mae or Freddie Mac
Under the Streamlined Modification Initiative, servicers are to identify homeowners who qualify and send them an offer. The offer will include trial payments and the borrower accepts the offer by making the trial payments.
While the program stands to help many people save their homes, it does not affect people without a significant amount of equity in their homes. If a home is underwater, or worth less than the mortgage on the home, then the loan is not eligible for this program.
John W. Hargrave & Associates has helped people just like you with mortgage modifications, stopping foreclosure, and saving their homes. Sometimes a Chapter 13 bankruptcy can be used to save a home. Other times a good mortgage modification can be used. In today’s ever-changing climate, you deserve skilled lawyers who know how to save homes. John W. Hargrave & Associates offers a FREE consultation, so call us today at 856-547-6500 !