photo by futureatlas.com
Fannie Mae and Freddie Mac modified nearly 24,000 loans during the 4th quarter of 2008, an increase of 76% over the third quarter. The modifications, along with suspension of foreclosures that began November 26, reduced the number of foreclosures by nearly 27% during the quarter.
Foreclosure prevention options include *forbearance plans, payment plans, delinquency advances and loan modifications.
*Forbearance – postponement of loan payments for a temporary period of time (usually up to one year)
*Payment plans – schedule of payments may be modified (from monthly to weekly or bi-weekly, increased to add on and catch up arrearages, etc.)
*Delinquency advance -promise to pay at a later date (moving delinquencies, possibly to the back end of the loan)
*Loan Modifications – modifying the existing loan by reducing the interest rate, extending the term of the loan, changing to a different type of loan or any combination of the three
Workout options that led to a resolution of delinquent accounts increased 15% in the last quarter of 2008 (the account was either reinstated or removed from the portfolio).
This is very good news if you are delinquent in your mortgage payments with an FHA loan. Fannie Mae and Freddie Mac are motivated to work with you to prevent you from losing your home.
Read the entire report by the Federal Housing Finance Agency to get much more information along with detailed charts and graphs.
