Principle Reductions and Information about Loan Modifications
Hi there, I’m Shawn Polston with TucsonShortSaleNegotiator.com, one of Tucson’s leading short sale teams. On the loan modification front, the federal housing finance agency released some information recently and they basically control Fannie Mae and Freddie Mac. They are the two largest owners of mortgages in the United States. If you would like to figure out if you have a Fannie Mae or a Freddie Mac loan, we can help you with that. We have an easy way to find out.
The federal housing finance agency just released guidance that Fannie Mae and Freddie Mac are not allowed to do principle reduction loan modifications. What this means to you is if you are submitting a loan modification package and what you are hoping for is that they are going to modify the amount of money you owe them. It’s important for you to find out if you have a Fannie Mae or Freddie Mac loan because you know the answer. Unfortunately that’s their stance on it, and that’s what they are going to do.
We have had homeowners who are late on their payments and they are going through the loan modification process and the clock is ticking. Somewhere in the distance is foreclosure once the payments stop coming in. They go through this loan mod process, the foreclosure process starts and they get down to the end of this loan mod process and don’t get the loan mod they were hoping for. So then they think about short selling the house. By the time they finally come talk to me we have three weeks left or there is an act of foreclosure date that is hanging over their head right now and we are under a time crunch. Once you stop making payments on a mortgage, you only have a certain amount of time before they are going to foreclose.
It is really critical before you wait it out for that loan mod that very well may never come, do some investigations as to who owns your loan. With Fannie Mae and Freddie Mac, they have pretty clear cut guidelines on what they will do and what they won’t do. If you are considering a loan modification and you would like to talk to someone about it, we are always happy to talk to you about it. Again, I’m Shawn Polston, one of Tucson’s leading short sale teams and we are here to help. Fill out the short sale request form or pick up the phone and give me a call. So don’t waste time, come and see us and we will help you out. Thanks and we hope you are having a great day.
