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Simplified Home Loan Modification Program Announced

April 4, 2013 by · Leave a Comment 

Simplified Modification Initiative AnnouncedThe Federal Housing Finance Agency (FHFA) recently announced a new, streamlined home loan modification program to help Northwest Indiana home owners who are behind in their payments or own a home with a mortgage that is under water.

The purpose of the recently announced program continues to focus on helping troubled borrowers avoid foreclosure and stay in their homes.

Beginning this summer, on July 1st to be exact, the new Streamlined Modification Initiative will be available to home owners that meet certain criteria.

Click here to apply for your FREE home loan approval.

Interestingly, this new program will require home loan servicers to provide eligible home owners whose loans are owned or guaranteed by Freddie Mac or Fannie Mae with a 90 day trial modification without requiring financial or hardship documentation.

The terms of this new program have been disclosed as a way for borrowers who are at least 90 days past due on their mortgages to convert their home loan to a fixed rate mortgage with the term of the loan extended to 40 years for the lowest amortized monthly payment.

Eligible borrowers will receive this short-term modification program in order to show “good faith” by making 3 on-time monthly payments. Upon successful completion of this trial modification period, the Streamlined Modification Initiative will direct the loan servicer to extend the home loan modification permanently.

Click here to apply for your FREE home loan approval.

Home Affordable Modification Program Still Available

The new home loan modification program was developed to become an alternative to the already established Home Affordable Modification Program (HAMP).

One important note is that homeowners who continue to investigate all loan modification options with their loan servicer may save even more than the savings offered through the new Simplified Modification Initiative.

Click here to apply for your FREE home loan approval.

Potential For Principal Reductions

Language in the Streamlined Modification Initiative mentions that some home owners who are under water with regard to their mortgage may be entitled to principal reduction as a component of their home loan modification.

The specific details and criteria for these principal reductions have not been specified, although contacting your trusted, licensed mortgage loan professional would be an excellent way to uncover the details.

Click here to apply for your FREE home loan approval.

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James K Barath, CMPS®

James K Barath is a Certified Mortgage Planning Specialist®, Certified FICO® Professional, Certified Military Housing Specialist® and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James for your FREE Home Loan Approval !  His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy!

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