April 8, 2013 3:46 am
"The Streamlined Modification will open a new gateway to mortgage relief for many of America's struggling borrowers. Starting July 1, 2013 servicers will proactively offer eligible borrowers a Streamlined Modification, which can cut monthly mortgage payments by as much as a standard modification but with less documentation. We look forward to working with our servicers to implement the Streamlined Modification initiative, which underscores our commitment to keep more financially troubled borrowers in their homes. Freddie Mac has helped an estimated 2.6 million families avoid foreclosure through mortgage modifications or refinancing since the housing crisis began."
• The Streamlined Modification will target borrowers who are at least 90 days delinquent on mortgages that are at least 12 months old, and meet other eligibility criteria.
• Eligible borrowers are not required to submit documentation, but can accept a Streamlined Modification offer simply by making the trial period payments. The modification becomes permanent once the borrower demonstrates their ability to pay by completing the trial period.
• The Streamlined Modification offers the same mortgage terms as the Standard Modification Freddie Mac announced in September 2011, which enables servicers to reduce a borrower's monthly mortgage payment by adjusting interest rates, extending payment terms to 40 years, and providing principal forbearance for certain underwater borrowers.
• Detailed guidance implementing the Streamlined Modification can be found at FreddieMac.com.
• Freddie Mac and its servicers have helped more than 785,000 distressed borrowers avoid foreclosure through mortgage modifications, forbearance, repayment plans, short sales and deeds-in-lieu since 2009. Freddie Mac has also helped more than 1.8 million families make homeownership more affordable through the Freddie Mac Relief Refinance program, which includes the Home Affordable Refinance Program (HARP).
Published with permission from RISMedia.