Mortgage Help via the Streamlined Modification Program
Many seriously delinquent homeowners may have a chance to immediately receive a loan modification via a new initiative from Fannie Mae and Freddie Mac.
Yesterday, Freddie Mac announced that the Streamlined Modification program, an initiative that was originally scheduled to start July 1, 2013, is now available to all eligible borrowers nationwide. Under this program, borrowers with loans backed by Fannie Mae and Freddie Mac that are at least 90 – but no more than 720 – days delinquent may qualify for a loan modification without having to submit financial or hardship documentation to their servicer.
Here’s how the Streamlined Modification Program will work: all eligible borrowers will receive a letter with a modification offer from their servicers that will include details of a three-month trial period plan. The borrower can then choose to accept the offer by submitting a first trial period payment; if the borrower demonstrates their ability to pay their mortgage payments on time for three months, the modification will then become permanent.
The streamlined modification “offers” can reduce your monthly mortgage payment in a variety of ways, including adjusting interest rates, extending payment terms to 40 years, or, in some cases, providing principal forbearance. While counselors at our HOPE Hotline cannot tell you if you qualify for the program before Fannie Mae or Freddie Mac has contacted you, they can walk you through the various modification possibilities to make sure that it would make sense for your unique circumstances. To speak to an HPF counselor for free about the various Streamline Modification terms, call 888-995-HOPE (4673).