| How to Do a Loan Modification |
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| Real Estate Tips - Real Estate Tips |
| Tuesday, 29 September 2009 16:31 |
 The federal government, in an effort to streamline the loan modification process and establish wider participation among lenders, implemented The Federal Government Loan Modification (FHFA) Program on December 15, 2008. There is no termination date. The following participants for FHFA include: Fannie Mae Freddie Mac Federal Home Loan Banks Wells Fargo Department of the Treasury Federal Housing Administration (FHA) Federal Housing Finance Agency HOPE Now lenders Eligibility Requirements for the Federal Government (FHFA) Loan Modifications The plan is to streamline loan modifications, which will lower mortgage payments for financially strapped home owners and help to sustain long-term home ownership. Borrowers must be delinquent by three or more payments. Property must be owner occupied as a primary residence. Borrowers who have filed for bankruptcy are ineligible. Borrowers must be able to afford a 38% PITI debt-ratio payment. Eligibility Requirements for Citigroup Loan Modifications Citigroup must hold the first mortgage. It cannot be a second mortgage. The home owner must occupy the property as a principal residence. The home owner must be working in "good faith" with Citigroup and be truthful. The loan must be current. The home owner must require help to remain current on the mortgage. The existing mortgage payment must exceed 38% of the home owner's gross monthly income. Citigroup will require a hardship package from borrowers consisting in part: Hardship letter (explaining how you got into the situation, what you have done to rectify it and why you need help) Financial statement (assets and liabilities) Proof of income consisting of consecutive documents such as 2 pay stubs or 2 bank statements or 2 years of tax returns. |
| Last Updated on Wednesday, 30 September 2009 16:04 |
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Bobby Berousek
