If you've been late on your mortgage and are looking for a loan mod, then hold on. Fannie Mae and Freddie Mac have begun streamlining loan modifications. That is, it will be much easier to get a loan mod today than in the past. Effective July 1, 2013, lenders will be required to send out " Streamlined Modification Solicitation Offer" to borrowers who are at least 90 days delinquent and meet the new requirements. In brief, the following is the list of the main requirements:
1. Your mortgage must belong to Fannie Mae or Freddie Mac. Visit my http://readvocate.org, send me an email and I'll let you know if your loans belongs to Fannie or Freddie.
2. Your mortgage must be at least 12 months old.
3. Your LTV (Loan to Value) must be 80% or higher. Click HERE to calculate your loan to value. For the approximate value of your home, click "What's My Home Really Worth."
So What's Different? First of all, you will NOT need to document your financial hardship, which was one of the stopping points for a loan mod previously. If you previously made too much money, then you could forget about the loan mod. Also, if you were unemployed, then a loan mod was out of the question because the bank required income for a loan mod. Secondly, the lender will send you your new loan mod terms, called a "Streamlined Modification Offer,", which you could accept. After this, the lender will put you through a 3 month trial - if you make the payments, then the "offer" becomes your new loan. If you cannot make the payments, then you're back to square one.
If you know someone struggling to make their payments or on the verge of foreclosure, have them call me or visit my website at http://readvocate.org. I'm a certified default advocate and short sale expert. Peace.
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| Hector D. Martiner/Owner Mission Realty Services |
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