Using Streamlined Modification to Save Your Home Without Paperwork
Fannie Mae and Freddie Mac are currently offering a streamlined modification program. This program allows struggling homeowners to get relief without having to fill out any paperwork or forms.
This program can help the borrower overcome the barriers that are put up by the documentation and application process. Many homeowners simply fail to get the mortgage relief they need because they can’t get past those hurdles.
This program is in effect until the end of 2015, and has certain requirements:
- The mortgage must be a Fannie Mae or Freddie Mac loan
- Borrowers are between 90 and 720 days late
- Mortgage must be at least a year old
- Loan-to-value ratio greater than 80%
- The modified loan payment must be equal to or less than the current payment
- Borrowers must make three payments during a trial period
If borrowers make the three trial payments, the loan is modified permanently, up to a 40-year mortgage. This can reduce interest rates and payments for the borrower.
Unlike other loss mitigation programs, the home does NOT have to be occupied by the owner to be eligible for a streamlined modification.
These streamlined modifications are often initiated by the lenders. We always advise our clients to open and read everything they receive from their mortgage company. When one is 90 days or more behind on mortgage payments, this becomes especially crucial because there may be an offer of a streamlined modification in the mail that can offer real relief. (See “Mortgage Modification Programs Save Homes.”) Borrowers can also reach out to lenders and see if their Fannie- or Freddie-owned or serviced loan is eligible for a streamlined modification.
For homeowners who aren’t able to get a streamlined modification, and for whom the application and documentation process seems insurmountable, we’re here to help. Our certified housing counselors can help you put together the paperwork you need, no matter what kind of mortgage relief you’re seeking. Call us today for free, confidential help.