In April, Fannie Mae loan servicers will have another option to offer to their borrowers. HomeSaver Advance will be their newest loss mitigation option to look to for delinquent mortgages. The key to this option will be that a borrower can show that the reason that triggered their delinquency - i.e. job loss, medical emergency - has been resolved and they now have the long-term financial capability to not only continue making their scheduled mortgage payments, but the additional amount needed to cure the delinquency. Provided the borrower can establish this, they are willing to participate in this program, they have made at least 6 monthly payments on their existing mortgage, and they do not already have a HomeSaver Advance note:

• They may borrow up to the lesser of $15,000 or 15% of their unpaid principal balance to cure their delinquency, including at 2 months or more of delinquent PITI, escrow advances, attorney fees, and homeowners association fees (up to 6 months, or 12 months if dues are paid annually)
• Note will be an unsecured personal loan with no interest or payments for the first six months, after which they will have fully amortized payments for a period of 14 ½ years
• Borrower will pay a workout fee of $600 to the servicer, who will be a third party contracted to service these HomeSaver Advance promissory notes

So, struggling homeowners, if you are unable to refinance your home loan, you may now consider the following solutions:

Repayment Plan - arranging to pay down past due amounts in addition to your scheduled monthly payments

Advance - HomeSaver Advance's advance to cure a delinquent loan

Note Modification - renegotiated terms on your loan, such as the interest rate, length of repayment term or the loan balance

Short-Sale - working with your existing mortgage holder to reduce the balance to be paid to them upon the successful closing of the sale of your property prior to it being foreclosed on

Deed-in-Lieu of Foreclosure - transferring the title to the property back to the mortgage holder to satisfy the mortgage debt and avoid foreclosure

Additional details may be obtained by calling Fannie Mae at 1-888-326-6438

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com