Q? WHAT IS A LOAN MODIFICATION?
My fellow ActiveRainer, Eric Reid posted this very informative blog about Loan Modification. Thank you Eric. As a person who wondered if I qualified for this "Loan Modification", I did some searching. and I'd like to add two links that I think will supplement what eric has given us.
The two types of loans eligible for loan modification are Fannie Mae and Freddie Mac loans. To find out if yours is one of them, call or click on the following links:
Fannie Mae
- 1-800-7FANNIE (8am to 8pm EST) http://loanlookup.fanniemae.com/loanlookup
Freddie Mac
- 1-800-FREDDIE (8am to 8pm EST) https://ww3.freddiemac.com/corporate
If your loans don't qualify, here's another important link to check out for some free advice from a not-for-profit organization. The Homeowners' Hope Hotline 1-888-995-HOPE (4673).
Hope you find this information helpful.
Frances Sanderson, Franklin, NH REALTOR®, Certified EcoBroker®
A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.
Trial loan modifications consistent with these Guidelines may be offered to homeowners beginning on this date, March 4, 2009, and may be considered for acceptance into the Home Affordable Modification Program upon completion of the trial period and other conditions. These Guidelines, however, do not constitute a contract offer binding on the Department of the Treasury.
Qualification Terms:
The home must be an owner occupied, single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real property under state law).
The home must be a primary residence (verified with tax return, credit report, and other documentation such as a utility bill).
The home may not be investor-owned.
The home may not be vacant or condemned.
Borrowers in bankruptcy are not automatically eliminated from consideration for a modification.
Borrowers in active litigation regarding the mortgage loan can qualify for a modification without waiving their legal rights.
First lien loans must have an unpaid principal balance (prior to capitalization of arrearages) equal to or less than:
1 Unit: $729,750
2 Units: $934,200
3 Units: $1,129,250
4 Units: $1,403,400If you don't qualify for a Loan Modificationn Contract RENAISSANCE REALTY to discuss a Short Sale option
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