FANNIE MAE STREAMLINES MORTGAGE MODIFICATION PROGRAMS
Fannie Mae recently announced the Streamlined Modification Program (SMP) is now available to Fannie Mae servicers and borrowers as an option to help prevent foreclosures. The SMP enables services to change the terms of a loan to reduce a borrower's monthly mortgage payment, including taxes, insurance, and HOA dues, to an amount equal to 38 percent of the borrower's gross monthly income.
The changes in terms may include one or more of the following: Adding the accrued interest, escrow advances and costs to the principal balance of the loan, if allowed by state law; extending the length of the mortgage loan as appropriate; reducing the mortgage loan interest rate; forbearing on a portion of the principal, which will require the borrower to make a balloon payment when the loan matures, is paid off, or is refinanced.
Servicers will be sending modification solicitation letters beginning this month to borrowers believed to be eligible for the program. La Jolla bank owned real estate
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Owning a home is not the be all and end all. In fact, for a fair number of people renting is a much better choice. A house can be an albatross that is hard to dispose of. It certainly limits your mobility. The government is making a mistake trying to maximize home ownership with it’s easy money policies.
San Diego Legal Advice
FANNIE MAE AND FREDDI MAC are the public companies traded on stock market. When there was profit the investors got the profit. When they are in loss WHY Taxpayers are asked to pay for the loss. ??????????????? FANNIE MAE AND FREDDI MAC should NOT be bailed out.
Orange County Attorneys
Too little; too late. Bailing out the wrong people!
Downtown Real Estate Agent
The most common mortgage modifications are listed below:
lowering the mortgage interest rate
reducing the mortgage principal balance
fixing adjustable interest rates within the mortgage
increasing the loan term throughout the mortgage
forgiveness of payment defaults and fees
or any combination of the above
I have a Fannie Mae Loan, I am trying to process a Loan Modfication. I have asked for a copy of the original Truth and Lending statement!. Fannie Mae/Bank of America cannot provide , in additiona they cannot provide a copy of the “Three Day Right of Recession” that I signed either. I have a letter stating those facts.
I have written back to Bank of America and advised them that these documents are required by law. Any suggestions re: Loan Mod or Forensic Audit?
Hi Jan,
Thanks for the comment/question. You really have more of a legal question vs. a real estate one. The best advice I can give is to contact a local San Diego real estate attorney.
You might want to look at San Diego real estate lawyers listed on the San Diego lawyers directory.
Bob Schwartz
San Diego real estate