The Federal Housing Finance Agency announced plans for allowing Fannie and Freddie to modify more of their loans. The mods will lower interest rates or lengthen the repayment schedule with the goal of bringing payments below 38% of household income. To qualify, borrowers must:
- Be 90+ days late on their payments
- Show affidavit of financial hardship
- Not have filed for bankruptcy
- Have taken out the mortgage before Jan 1, 2008
The more favorable terms will apply for a 90-day period, and if you successfully make payments for those 3 months, then the modifications get locked in. To apply, call 888-995-HOPE.
Fannie, Freddie Unveil Plan to Modify Loans [WSJ]
Fannie Mae and Freddie Mac are expected to announce today plans for accelerating and expanding mortgage loan modifications for distressed homeowners. The new guidelines will apply to specific kinds of past due loans and try to bring their debt to income ratio down to 38%. Washington will also prod other big banks to do the same. “It could apply to a broad range of borrowers,” 
