Mortgage Modification Program for "high risk borrowers" from Freddie Mac and Fannie Mae
Freddie Mac and Fannie Mae have announced a streamlined mortgage modification program for highest risk borrowers. The program intends to create an affordable monthly mortgage payment based on household gross income.
What is a "high risk borrower"? It means you:
- have missed three (3) payments or more,
- own and occupy the property as a primary residence, and
- have not filed bankruptcy.
If you think you may qualify, here are steps you need to take:
- Call your loan servicer if you think you qualify for the Fannie Mae/Freddie Mac loan modification program. To qualify, you must be 90 days delinquent, verify your income and the value of the house, live in the house and have a loan of at least 90% of the home's value.
- If you don't qualify for the Fannie Mae/Freddie Mac plan, contact HOPE Now, an alliance of mortgage companies, for a custom workout. Go to www.hopenow.com or call 888-995-4673.
- If your loan is serviced or owned by Citigroup, go to www.mortgagehelp.citi.com or call 800-6678-4243.
Other lenders that have announced foreclosure prevention measures in recent weeks include JPMorgan Chase & Co. and Bank of America Corp.