What is streamlined modification program?
Under the Streamlined Modification Initiative, many borrowers who are at least 90 days delinquent will be sent a Streamlined Modification Solicitation Offer that includes a Trial Period Plan specifying the dollar amount of the new mortgage payment based upon a fixed interest rate, extending the payment terms to 40 …
What is a streamlined flex modification?
The Streamlined Modification program was designed eliminate hardship and financial paperwork and time to review those files while qualified borrowers only need to make three payments in a row on time to have the mortgage permanently modified.
What is a modification program?
FHA-Home Affordable Modification Program (FHA-HAMP) Allows homeowners to modify their FHA-insured mortgages to reduce monthly mortgage payments and avoid foreclosure.
What is the benefit of a loan modification?
The goal of a loan modification is to help a homeowner catch up on missed mortgage payments and avoid foreclosure. If your servicer or lender agrees to a mortgage loan modification, it may result in lowering your monthly payment, extending or shortening your loan’s term, or decreasing the interest rate you pay.
What’s a FHA streamline?
Streamline Your FHA Mortgage. Streamline refinance refers to the refinance of an existing FHA-insured mortgage requiring limited borrower credit documentation and underwriting. Streamline refinances are available under credit qualifying and non-credit qualifying options.
Who qualifies for flex modification program?
Eligibility for a Flex Modification
- the loan must be a conventional first mortgage.
- you must have suffered an eligible financial hardship.
- you must have a stable income that will support a monthly payment, and.
- you must have taken out your mortgage at least 12 months before being evaluated for a Flex Modification.
Do I qualify for flex modification program?
Am I eligible for the Flex Modification program? In order to get a Flex Modification, your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac. If you’re not sure who owns your loan, you can use the lookup tools on the Fannie Mae and Freddie Mac websites.
What are the disadvantages of a loan modification?
Cons of Mortgage Loan Modification
- Taking longer to pay off your debt. If you are paying off the same amount of principal with smaller monthly payments, it will take longer for you to pay off your home.
- Paying more interest over time.
- The foreclosure process won’t stop while you’re negotiating.
What is the downside of loan modification?
You will likely pay fees to modify your loan. You may incur tax liabilities. Your credit score will suffer if your lender reports your modification as a debt settlement. If you continue to make late payments or no payments on your loan modification, your lender may escalate foreclosure on your home.
What is the streamlined modification initiative?
The Streamlined Modification Initiative builds on the principles of the Servicing Alignment Initiative by encouraging servicers to resolve delinquencies earlier and in a more consistent and expeditious manner to keep more people in their homes and to minimize losses to Fannie Mae, Freddie Mac and taxpayers. The program expires August 1, 2015.
Who qualifies for a streamline loan modification?
The Federal Housing Finance Agency administered the streamlined modification programs. It only made its streamlined modification program available to borrowers with Fannie Mae and Freddie Mac home loans. Your loan qualified when either of these agencies owned or guaranteed your loan.
What is the FHFA Streamlined Modification Program?
[On May 30, 2013 FHFA announced the streamlined modification program would be extended to December 30, 2015.] The program is available to those homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac.
What happened to the Fannie Mae and Freddie Mac streamline loan modifications?
The Fannie Mae and Freddie Mac streamlined loan modification program was closed and new Flex Modification initiatives were created. The Federal Housing Finance Agency administered the streamlined modification programs. It only made its streamlined modification program available to borrowers with Fannie Mae and Freddie Mac home loans.