The Federal Housing Finance Agency announced plans for a New Streamlined Modification Initiative that is to take effect on July 1, 2013 and set to expire August 1, 2015.
This new program will eliminate hardship and financial paperwork and time to review those files while qualified borrowers only need to make three payments in a row on time to have the mortgage permanently modified.
What is the Streamlined Modification Initiative?
The new Streamlined Modification Initiative is designed with the purpose of helping to assist more borrowers and homeowners who have mortgages which are either owned or guaranteed by Fannie Mae or Freddie Mac to maintain their homeownership. With its foundation rooted within lessons learned from the Servicing Alignment Initiative (SAI), a strong effort is made to help encourage borrowers to reach out and engage with their mortgage servicers in order to obtain a successful modification solution.
Under the new initiative, borrowers who are at least 90 days delinquent will be sent a Streamlined Modification Solicitation Offer that will include a Trial Period Plan which specifies the dollar amount of the newly adjusted proposed mortgage payment. This figure is based upon a fixed interest rate and extends the payment terms to 40 years while also providing principal forbearance for certain homeowners who have properties that are worth less than they owe (or underwater).
And to speed up the entire process, the financial and hardship paperwork will not be required of borrowers in order to receive the modification. This also eliminates the need for that paperwork to be reviewed, and the time it once took for that process to complete.
Our Tampa loan modification attorneys can help play a key role in the process by helping negotiate the terms for you and may even be able to help you discover ways to help your case even further, while also making sure the lender isn't cutting any corners on their end of the deal as well.
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