Fannie, Freddie Making Mods Easier

In a new move, both GSE's Fannie Mae and Freddie Mac, are moving to start a new program making loan mods easier in many cases. Already announced, the Streamlined Modification Program will provide those who qualify an easier time of it in obtaining a loan mod of their Fannie or Freddie backed loans. Originally scheduled for a July 1 start, both GSE's are now using the plan. Basically, it makes a borrower eligible if they are at least 90 days delinquent, but not more than 720 days (almost two years) past due. The loan itself has eligibility requirements as well. It must be a first lien loan that is already at least a year old, and have a loan to value ration of at least 80%. If a borrower and loan fall within these parameters, then that borrower may qualify for the mod without having to submit documentation on his/her finances or hardship situation. If he/she receives one of these streamlined mods, it initially will be made as a trial modification for an initial period of three months. As long as the borrower makes all payments on time during that initial three months, the mod will then become permanent. So, if your loan is tied to either Fannie or Freddie and you think you fit into the qualification parameters mentioned above, get in touch with the folks at Fannie or Freddie right away! The money you save could also save your home! Good Luck.