Fannie Mae recently announced it will implement a program to provide lower home loan interest rates to all current borrowers who have not been able to refinance, as well as those who are delinquent on their loans. Just what constitutes someone who is delinquent on their loan? There are many factors that determine whether or not a homeowner will be eligible and how much interest they will pay during the next 30 years.
Is the loan delinquent due to a job loss? Were there financial changes that occurred that are the cause of the delinquency? Although the typical delinquent homeowner may have more issues and be more difficult to work with, they are by no means doomed.
Fannie Mae is an excellent program that helps homeowners finance their homes and keep them from being foreclosed on. The delinquency rate is currently up to 40-50% and has also gone up as more and more of our houses become distressed every day. The current suspension of the lower FHA loan interest rates is a step in the right direction. It is a step Fannie Mae will continue to take with pending legislation to help homeowners refinance out of their sub-prime loans. By allowing homeowners to cash in on the opportunity to get a more affordable monthly mortgage payment, Fannie has been able to assist thousands of families keep their homes and lower interest rates for all existing and potential homeowners. By allowing current homeowners to refinance out of their sub-prime loans, Fannie will be able to help thousands of homeowners keep their homes and lower interest rates for all existing and potential homeowners.
Fannie Mae is certainly trying to solve the problem for current homeowners who are either delinquent on their loans or will soon be delinquent on their loans. However, this new method of helping borrowers with past-due or past equity loans could be a step too far for some homeowners. This new program involves offeringay-for-posalreplacement(ators) on existing or re-finance mortgage loans and loans in arrears for borrowers whose loans are two or more months delinquent. They will be considered for eligibility based on the following qualifications: (1.) The loan shall have originated on or before January 1, 2009; (2.) The loan(s) in question have not been and would not be entitled to any of the provisions of theHomeowner Stability Initiative.*They must also commit to a home ownership goal of no more than four years later than the date they are refinancing their loans with the new recreational mortgage program announced by Fannie Mae on April 1, 2009.*They must either agree to a planned occupancy of no less than 12 months after the date they refinance the loans or occupancy of the property.*The borrowers’ total house payments combined, including real estate taxes, home owner’s insurance, hazard insurance, home mortgage insurance, and any homeowner association fees, must not exceed 55% of the homeowners’ gross monthly income.
All together, these new plans should help some homeowners in need as they try to get their finances in order to qualify for the government sponsored mortgage loan modification program.The key to remember is to stay on top of your housing payment and to be proactive in discussions with your lender. If you are delinquent or on the verge of being delinquent, don’t fear a foreclosure as long as you take the actions necessary to prove you can make your new, lower payment on a monthly basis.
For many homeowners, a government-sponsored mortgage loan modification will alleviate the fear of losing their home. However, for some, a lot remains. If you discover you still owe your lender more than what the house will sell for on the market, you must prepare yourself to either use a short-term loan or move to something less expensive to live in while this house is on the market.