90 days late on your mortgage? Here’s help?
<span class=”Apple-style-span” style=”font-family: ‘Times New Roman’; font-size: 14px; “><p><span class=”icomplybody”>The Federal Housing Finance Agency announced a major loan modification program today to combat the rising foreclosure rate. The Agency’s streamlined modification program requires less documentation and faster processing to assist borrowers into sustainable mortgage payments equal to 38% of the borrower’s monthly gross household income.</span></p><p><span class=”icomplybody”>The modification program specifically targets “highest risk borrowers.” To qualify as a highest risk borrower, a person must:</span></p><ul><li><span class=”icomplybody”></span> <span class=”icomplybody”>miss three (3) or more loan payments;</span></li><li><span class=”icomplybody”>own and occupy the mortgaged property as a primary residence; and</span></li><li><span class=”icomplybody”>have not filed for bankruptcy.</span></li></ul><p><span class=”icomplybody”>Interested borrowers with loans through Fannie Mae, Freddie Mac, or participating investors should contact their servicers. To qualify, a borrower must certify that he or she experienced a hardship or change in financial circumstances, and did not purposefully default to obtain a loan modification. Mortgage servicers will consider the borrower’s monthly income, association fees and dues, and hardship statement when calculating the 38% sustainable payment amount. Borrowers who do not qualify for modification through the streamlined process may still seek a loan modification through a customized process.</span></p><p><span class=”icomplybody”>Fannie Mae and Freddie Mac will soon issue guidance to their servicers implementing the streamlined modification program. Both will require implementation by December 15, 2008.</span></p></span>