New Home Loan Modification No Paperwork Yes No Paperwork

Posted by on Jun 26, 2013 in Blog | Comments Off on New Home Loan Modification No Paperwork Yes No Paperwork

Homeowners who have fell behind on their mortgage payments should check their mail in the coming weeks. Lenders will be offering modifications without even being asked. Under a new streamlined modification initiative by the Federal Housing Finance Agency, mortgage servicers must now offer borrowers who are 3 to 24 months delinquent a plan to help avoid foreclosure. Unlike the HAMP program this one carries no documentation requirement. Borrowers may be approved without providing any proof of financial hardship at all. All it takes is for the borrower to make that new and they’re in the trail period of the program. There’s not even a requirement that you sign something, send it in and have it approved. Borrowers must make 3 monthly payments on time before the modification becomes permanent .the program applies to loans owned or guaranteed by Fannie Mae or Freddie Mac. The program starts July 1 2013 and will end Dec. 31 2015. The program applies to primary residences, investment Properties and second homes. Borrowers may have up to 20 percent equity in the property. Under the modification the arrears are added to the back of the loan and the loan term extended to 480 months. Then rate is about 4 percent.