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Patrick Neale Consumer and Business Lawyer Blog

Wednesday, April 8, 2015

New Assistance Program for Borrowers with Modified Mortgages

The two largest owners and servicers of mortgages in the US, Fannie Mae and Freddie Mac, have introduced a new program to help those homeowners who received a loan modification in 2010 and whose interest rates are going to reset to a higher rate this year.

Borrowers with loans backed or owned by Fannie Mae or Freddie Mac that were modified in 2010 and set to have an interest rate increase this year, which fall more than 60 days behind in their payments in the year after the interest rate increase, may qualify.  The servicer on the loan is required to reach out to the qualified borrower and offer an expedited re-modification.

In plain English, if you got a loan modification in 2010 and your loan is now owned or backed by Fannie Mae or Freddie Mac and its interest rate adjusts in 2015, which is the case for most of these modifications, AND due to the interest rate increase you fall sixty days behind on your payments in the year after the adjustment takes effect, you should get an offer to re-modify your loan.

As you can see from the above, there are several conditions to this requirement, but if you got a loan modification in 2010 and it adjusts this year, you should check to see who owns or backs your loan. That information is available at https://www.knowyouroptions.com/loanlookup for Fannie Mae loans and https://ww3.freddiemac.com/loanlookup/ for Freddie Mac loans.  If your loan does not show up with either of these searches, then your loan is owned by another entity and does not qualify for this program.

This could be a great benefit to people who have had an affordable payment, but who just cannot make the payment if the interest rate increases.  People who are in that position can apply for an expedited modification and potentially keep their home.

As always, there may be negative consequences to your credit rating if you make your mortgage payments late.  Patrick Neale & Associates is not recommending that you skip or make late mortgage payments.

For more information about this program contact the servicer of your mortgage.




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5470 Bryson Court, Suite 103, Naples, FL 34109
| Phone: 239-642-1485
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| Phone: 239-642-1485
Mailing Address: P. O. Box 9440, Naples, FL 34101-9440
| Phone: 239-642-1485

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© 2015 Patrick Neale & Associates | Disclaimer
5470 Bryson Court, Suite 103, Naples, FL 34109
950 North Collier Blvd., 4th Floor, Marco Island, FL 34145 (hours by appointment)
Mailing Address: P. O. Box 9440, Naples, FL 34101
Phone: 239-642-1485 | Fax: 239-642-1487
Practice Areas | About Us | Important Links & Forms | Blog | Consultation Request | Contact Us

Law Firm Website Design by
Amicus Creative

A NACBA Member Website