Things you must know about loan modifications

What you need to know about loan modification

Loan modifications may not have been applicable to all loans, because most big lenders sell the loans to Fannie Mae, Freddie Mac or Ginnie Mae. These government-sponsored enterprises group the mortgages that they acquire and sell them to investors. In such cases, a loan modification was not always an option. However, now that the federal government has taken over Fannie Mae and Freddie Mac, you can expect more lenders to offer loan modifications. If a loan cannot be modified, the client has the option of applying for a “streamlined” refinance with the same loan servicer. It proves advantageous in using the current loan servicer, as homeowners can reduce the amount of paperwork, costs, and delays. Loan modifications are easier to complete in cases such as these, but are not limited to these alone:

• The Homeowner has fallen behind on the mortgage payments

• The Homeowner is financially affected because the principal loan amount is higher than the current appraised value of the home.

• The Homeowner currently has an interest only loan(s)

• The Homeowner is in an adjustable rate mortgage that either have not yet begun to adjusted, or are in their adjustment period.

• The Homeowner is in A Minimum Payment Adjustable Rate Mortgage called an Option Arm.

• Income has changed or expenses have increased

If you have one or more of these acceptable hardships then your chances of successfully completing a loan modification is greatly increased. Contact JNR Associates for a free analysis!

The Making Home Affordable Program Launched Under Obama

The Making Home Affordable Program launched under the Obama administration in March of 2009 was aimed at helping homeowners in distressed mortgage programs stay in their homes.  Under the Making Home Affordable Program the goal was to provide Loan Modifications for the home owners to make their full mortgage payment including principal, interest, taxes, and insurance is equal to 31% of their gross income. $75 billion dollars has been allocated of the stimulus funds for sustainable mortgage modifications through the Home Affordable Modification Program (HAMP).

In the short time this program has been available more than 400,000 loan modification offers have been extended and more than 230,000 trial loan modifications have begun.  The current pace of loan modifications provided has put the program on track to offer loan modification assistance to up to 3 to 4 million homeowners over the next three years!

To continue and emphasize the positive growth of this home saving campaign, the Administration requested loan servicers to ramp up implementation of this loan modification campaign to a cumulative 500,000 trial loan modifications started by November 1, 2009. This would more than double in three months the number of trial modifications started in the first five months of the program.

There is no better time to take advantage of this opportunity presented to distressed home owners. This program was funded to help an estimated 3-4 million home owners, see if you qualify, before the program is no longer available.

Online www.jnrassociates.com is an informative site detailing the “qualifying hardships” the Making Home Affordable Program was aimed at helping.

Good Luck!!