On November 1, 2010, new guidelines released by Fannie Mae will mean that unemployed homeowners cannot count jobless benefits as income when applying for mortgage loan modification programs on loans backed by Fannie Mae.
Fannie Mae wanted the nation to know that they were not doing this to make it harder for borrowers to seek help. They were merely broadening the ban already in place by the Treasury Department.
Since this major change, those who are unemployed may still apply for HAMP but they will now be considered for a forbearance plan which could include a reduced payment for at least three months.
But this suspension apparently goes further. Fannie Mae also prevents banks from using unemployment benefits in their own loan modification programs if the loan is backed by Fannie Mae.
This definitely hurts the economy since this group accounts for most of the new mortgage delinquencies. Most were hoping to use their benefits as income to help them save their home.
It only makes sense that bank modifications are growing by leaps and bounds since HAMP has in essence been a complete failure.
About 448,000 consumers have received permanent loan modifications under HAMP in August of 2010 which was up from 423,000 a month earlier.
In addition, another 46,900 fell out of the HAMP program in August 2010.
Then there is the trial period that includes approximately 202,753 mortgage payers who will be evaluated to see if they are able to continue financially with their new lower payment.
Of those who fall out of the program, some 44.5 percent of them receive other types of modifications from their servicers.
Somewhere in the neighborhood of 13.9 percent default again on their new loan modification and wind up in foreclosure. Thus, many mortgage owners have to look to other alternatives such as a principal reduction program.
It is a tragedy that those who deservingly receive unemployment benefits can no longer use these funds to qualify for a HAMP modification all thanks to Fannie Mae who themselves are a trouble mortgage company.
Get a St Louis loan today. Also visit www.StLouisMortgageGroup.com for a Loan Audit. Principal Loan Reduction: Available for both homes and businesses. Call us at 314-334-0210 or 877-334-0210.
young and the restless belgian malinois burj khalifa jamie lynn spears facade nhc to
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.