At least over the holidays. November 26 to January 9 is the time period that Freddie and Fannie will work on a new streamlined loan modification program favored by the Treasury Department. Also during this time they will suspend all evictions and foreclosures of homeowners. Hopefully during this period, these homeowners will benefit from the new streamlined approach that servicers are trying to implement by December 15.
The servicers are being asked to contact the homeowners. If the property is occupied, the foreclosure will be halted. Fannie estimates this will benefit 10,000 families. Under the streamlined approach, the interest rate can be reduced to 3% and also extend the loan to 40 years.
The objective is to reduce the borrowers payments to less than 38% of the homeowners gross income.
Marianne Bandy
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