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
