Wednesday, November 19, 2008

Federal Housing Finance Association announces forclosure initiative

The Federal Housing Finance Association has developed a new program to help borrowers who are in danger of foreclosure. Here are some details of this program:

The program targets borrowers who have missed three or more payments, own and occupy the property as a their primary residence, and has not filed for bankruptcy.

The program will modify the borrowers loan so that the payment is no more than 38 percent of monthly gross income, which will be achieved through a mix of reducing the mortgage interest rate, extending the life of the loan or deferring payment on part of the principal.

Fannie Mae and Freddie Mac loan servicers will be responsible for implementing the program by Dec. 15 and will receive $800 for each loan modified through the program.

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