Unemployed in Connecticut with a Fannie Mae or Freddie Mac Loan?
Andrea makes a very good suggestion in this post. It is far beter to address this situation as soon as it happens. Homeowner's can check if their home loan is Freddie or Fannie owned by going to this website:
http://www.fanniemae.com/loanlookup
http://www.freddiemac.com/mymortgage/
Help! I just got a pink slip, how am I going to pay my mortgage??? You may be entitled to some help, mortgage forbearance, or more to the point, deferring payment for a period of time. Of course you will have to repay the amount, and it won't be tacked on to the end of your loan. Rather when you get back to work you will have to pick up your mortgage payment again plus an additional amount to repay the amount that wasn't paid. They may also report your mortgage as delinquent and you should check on their specific policy on this.
If you find yourself unemployed (if your spouse/partner is on the mortgage too, but they are still employed, they still may give you a reduction or accept no payments for a time) you need to make sure you have a Fannie Mae or Freddie Mac loan. If you are unsure, call your loan servicer and ask. The guidelines rule out assistance if you financed with an FHA, VA, or USDA Rural Housing mortgage. The home must also be your primary residence.
There are very specific rules and regulations. I strongly urge you to contact your loan servicer to find out if you qualify, and always a good idea to discuss loan forbearance with a real estate attorney to understand how it will impact you later on down the road. For some the program will help to keep them from losing their home. The initial time frame allowed is 6 months, in some cases it can be extended up to 12 months.
What is the first thing to do if a job loss is threatening your mortgage payment? Contact your loan service provider immediately, don't wait until you haven't made a payment. Ask if Fannie Mae or Freddie Mac owns or has guaranteed your mortgage. If the answer is yes, have them explain the mortgage forbearance program to you, go over the long term effects and ramifications with you. I also suggest you may want to speak with a real estate attorney to understand how this program might affect you in the long run. The initial time frame allowed is 6 months, in some cases it can be extended up to 12 months. This forbearance policy becomes mandatory for Fannie Mae loans on March 1, 2012, and for Freddie Mac loans is it February 1, 2012.
If you lose your job in Connecticut and have a Freddie Mac or Fannie Mae mortgage there is hope. Contact your loan servicer to find out if you can participate in the loan forbearance program and save your home. If you don't qualify, if this isn't for you, give me a call to discuss a short sale of your home.
Andrea Swiedler, Realtor® Liddy Adams, GRI, Broker Associate
Cell: 203.460.1775 Email: andrea@andreaswiedler.com
Swiedler & Adams, we know real estate!
Prudential Connecticut Realty, New Milford & Litchfield, CT
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Call me at 203.460.1775
© Andrea Swiedler, 2009 - 2011
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