Foreclosure Protection Program
Fannie, Freddie announce Foreclosure Protection Program. The new foreclosure program Flex Modification will replace the existing program in late 2017. It was developed by the two corporations at the direction of the FHA.
“The Flex Modification is an adaptive program that will allow us to continue to assist struggling homeowners in a changing housing environment, and simplify the process for servicers to deliver those solutions.”
Flex Modification is expected to provide a 20 percent payment reduction for eligible borrowers. That includes a high percentage of those who are at least 60 days delinquent. The Fannie, Freddie foreclosure protection program could be an option for those who are current or less than 60 days delinquent in certain situations.
Imagine, you struggle to pay your $1,000 a month mortgage, then suddenly Fannie and Freddie agree to cut your payment by $200. While the Flex Modification program doesn’t go into effect until late 2017, there are signs of approaching foreclosure trouble including:
- Have difficulty paying the mortgage payment on time.
- Have very little savings for emergencies, and
- Use credit cards to get to the next payday.
- Paying the minimum on your credit cards
- Neglecting doctor and dental visits
- Shrinking from the ring of the phone
Don’t ignore the warning signs. The approaching signs of trouble should spur you into action to avoid Cedar Rapids foreclosure.
- Contact your lender and level with them. They may be nervous by the extent of your problem, but they have seen this before and will demand you take steps to fix it. That may require you selling your toys, while making major cuts in your spending.
- Don’t ignore your mail. Many have been in your shoes. Those first envelopes will contain helpful suggestions to get things under control. Then will come legal action. Ignoring those notices can cause you to lose everything.
- Know the Process of Foreclosure
You can help yourself by understanding that once you are delinquent by 60 days, you open yourself to losing your house. In most states 120 days delinquent can cause foreclosure proceedings to commence. - Contact Professionals – Your banker does not want to own your house. When you come clean about your financial situation, he may be able to modify the loan, offer forbearance or give you repayment options.
Loan modification could include a reduction of the interest rate, convert from a variable interest rate to a fixed interest rate, or extend the length of the term of the loan. A loan modification agreement is a permanent solution to unaffordable monthly payments.
A forbearance agreement provides short-term relief for borrowers. With a forbearance agreement, the lender agrees to reduce or suspend mortgage payments for a certain period of time and not to initiate a foreclosure during the forbearance period.
Pre-payment options could include a plan to repay missed payments in addition to making monthly payments, especially if there is a temporary hardship.
Harmony Property Solutions, LLC is proud to be a part of the Cedar Rapids community.
We help homeowners out of distressed situations. While our goal as investors is to make a modest profit on any deal, we help homeowners out of most any situation, no matter what! Harmony Property Solutions doesn’t charge any fees, upfront costs, commissions, or anything else. We give you the simple honest truth about your home and help you sell it fast to resolve any situation.
Give us a call today at 319-343-6773 and let us know how we can help you!