Good News : HAFA Mods & Fannie Video

In the last few days two very exciting items have been made available to homeowners at risk of foreclosure: one from the Treasury dealing with HAFA (Home Affordable mod program); and one from Fannie Mae in the form of an interactive video format.

The first, modifies HAFA's rules for getting a loan modification. There are four primary changes to the rules governing the program:
1.) Loan mod applicants must receive a decision within 30 days from the lender holding the mortgage;
2.) Loan servicing firms no longer have to verify financial info provided by the borrower/homeowner;
3.) Loan servicers also do not have to verify any longer if the borrowers debt to income ratio exceeds 31%;
and 4.) Lenders holding second or other subordinate liens will no longer be required to accept an amount equal to 6% of the existing unpaid balance of the loan.
All of these changes, while by no means guaranteeing a mod will be approved, will at least go a long way to insuring prompt response from the lender/lienholder so that the borrower can know what their prospects are and make any necessary arrangements related to their own situations.

The second item, from Fannie Mae to you, involves the use of interactive videos to attempt to help threatened homeowners learn how to avoid foreclosure. Called WaysHome, it is now viewable on the Fannie Mae website www.knowyouroptions.com .The site has actors playing the parts of distressed homeowners and allows the real homeowner using the site to participate in the fictional homeowner depicted's decision to achieve a remedy to the particular situation depicted. By having the visitors to the site taking the part of the people depicted on the site, it helps them learn different options, allows them to make decisions for each option, and learn what results may be expected in a given situation. Details can be obtained at the web site, or by contacting Fannie Mae.

Good luck in using either or both of these tools.