For those thousands of homeowners out their facing tough financial times, here’s some good news.
In the past you had to miss two or three payments before the mortgage company would talk to you about a loan modification. Now, Fannie Mae- Responsible for about 18,000 home loans, will allow borrowers facing tough financial times to request “early workout” loan alterations, before you even make your first late payment.
What precisely is a loan modification? A loan alteration is an abiding change in a number of provisions of a borrower’s mortgage, permits the loan to be reinstated, and ends up in a payment the homeowner can afford.
How do I know if I will be able to qualify for a loan modification? The number one factor your bank is having a look at is your capability to make the new altered payment now and in the future.
You must supply the bank with evidence of your revenue, together with a total and correct finance statement detailing your earnings and expenses to show them that if granted the loan alteration, you’ll be able to afford the new, lower payments.
Fannie Mae’s new policy can potentially save thousands of homes. Under the new approach, company servicers will be required to inform borrowers that if they are “reasonably” certain that changes in their income will cause them to miss mortgage payments, they might qualify for an advance loan modification.
Qualified buyers will start on a trial bases with reduced payments, usually for about four months or so- could then be made permanent. This is after your current situation and facts have been thoroughly examined.
Most banks are following suit considering our nation’s financial crisis.
You should call your financial institution and find out whether your loan is owned by Fannie, Freddie or another major lender, and then request an early workout.
Before the flurry of real estate foreclosures became apparent this reaching out to the customer was unheard of. The sign of the times….
The Recuset Group
For professional advice on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com
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