These brief explanations will help you become familiar with some of the options for loan modification:
The White House/Treasury Program:
Under the direction of the US Treasury, the Obama administration has designed an all-inclusive mortgage loan modification program to help borrowers who are experiencing financial challenges. These are typically good-paying customers who have lost significant equity in their homes because of the housing market crisis.
Copy and paste this link into your web browser to learn more about this program: http://www.financialstability.gov/roadtostability/homeowner.html
Financial Stability Plan:
This is a five step plan that was created by the government to alleviate tax burden and to stimulate economic revitalization. As part of the FSP, one of its initiatives includes an “Affordable Housing Support and Foreclosure Prevention Plan”.
To read more about this stimulant, click on this link: http://www.financialstability.gov/docs/fact-sheet.pdf
Federal Housing Finance Agency (FHFA) Program:
Another recent mortgage loan modification program is offered by the Federal Housing Finance Agency (FHFA), who is the supervisory regulators of both Freddie Mac and Fannie Mae. You may qualify for this loan modification program if your loan is a Fannie Mae or Freddie Mac loan.
Use this website to learn more about FHFA loan modifications: http://www.fhfa.gov/
Indy Mac Federal Bank:
Who is Indy Mac? This bank was one of the first financial institutions to offer loan modifications to their mortgage customers. The FDIC took over Indy Mac and made it the first test subject for a broad range of loan modification policies. Anyone who holds a note with Indy Mac Federal Bank is eligible for their programs.
This is a link to their site, which covers many of the mortgage loan modification programs offered: https://www.indymacmortgageservices.com/IndyMac/
The Home Affordable Refinance Program:
The Home Affordable Refinance Program (HARP) or Making Homes Affordable (MHA) is available to 4 – 5 million homeowners with a stable repayment history on any mortgages with Fannie Mae or Freddie Mac. In the past, borrowers would be unable to refinance their homes because of lost value that would push their existing loan-to-value ratios over the line of 80%. However, the Home Affordable Refinance program enables many homeowners who were previously ineligible to take advantage of a refinance an adjustable rate mortgage or to grab one of the currently low interest rates that are out there. They can then breathe a little easier, with a stable mortgage rate that does not fluctuate and they can move into a 30-year fixed rate note.
Here is more information on the “Help for America’s Homeowners” program: http://makinghomeaffordable.gov/index.html
Individual Financial Institutions Own Loan Modification Programs
All of the major banks in the United States have designed their own aggressive loan modification programs for their mortgage holders. These programs are anticipated to help hundreds of thousands of lenders.
Some of the major financial institutions who offer programs include:
Bank of America – Nationwide Homeowner Retention Program
http://webmedia.bankofamerica.com/corporateresponsibility/NHRP%20Enhancements%20Fact%20Sheet.pdf
Citigroup’s – Preemptive Initiatives to Help Homeowners
http://www.citigroup.com/citi/press/2008/081111a.htm
Wachovia & Wells Fargo – Help for Homeowners
https://www.wellsfargo.com/homeassist/
If your lender is not on this list, it doesn’t mean they don’t have a program. There are as many different banks currently offering loan modifications as there are programs. Go to the website of your financial institution and browse their offerings. Or call us today to let us guide you through the process.
Whatever you do, beware of the predatory lenders who are out there trying to kick you while you’re down. There are many programs offered that may do more harm than good, which is no place you want to be when trying to correct the situation and stay in your home.