Gainesville Short Sales – Mortgage Relief For Unemployed
Gainesville Short Sales – Mortgage Relief For Unemployed Starting March 1, the mortgage servicers will be required by Fannie Mae to come up with a new program that will give forbearance relief to borrowers who are unemployed. The servicers will be granted the right to give out relief up to 6 months even without the government-sponsored enterprise’s approval. Borrowers needing forbearance up to 12 months will be given special consideration. Specific guidelines have been made which simplify and centralize the use of forbearance according to the GSE.
Starting Feb. 1, Foreclosure News reports, Freddie Mac will be giving 12-month forbearance plans. In the third quarter, according to Federal Housing Finance Agency, the GSE servicers were able to give out 7,000 forbearance plans – this number is lower compared to the 8,000 plans given in the last three months. In the second quarter of 2010, the forbearance offers reached 20,000. Those qualified for the program include delinquent borrowers and those who are subject for default.
To qualify for the extension of forbearance plan, the borrowers should have a reservation of 12 months worth of mortgage payments and have more than 31% housing expenses monthly out of their income.
The forbearance plan for loans placed into mortgage-backed securities (MBS) cannot exceed the last payment scheduled. Servicers can provide forbearance plans amounting to 6 months for Mortgage Backed Securities pools given between June 1, 2007 and Dec. 1, 2008. For Mortgage Backed Securities issued prior to May 1, 2007 and after Jan. 1, 2009, longer plans can be doled out.
Servicers are being required by Fannie Mae to have an assessment for each borrower in order to determine those who are not eligible for the forbearance program, so they could find alternatives to avoid foreclosure. The servicers can have the verbal information given by the borrower as basis for their decision as long as it is documented in the loan file. To have an extension, the borrower is required to submit a documentation package before the first forbearance plan ceases.
Within 120 and 135 days of the forbearance plan, the servicer must check the borrower’s status of employment. The servicer is also required to communicate with the borrower on a monthly basis during the extended forbearance plan and reevaluate the eligibility of the borrower. Fannie Mae, reports Foreclosure News, will obligate servicers to preserve any previous mortgage insurance. These lenders are obligated to obtain consent from the MI company prior to taking necessary measures required in the policy. According also to the guidelines that were set, all unpaid late charges must be waived in case the borrowers receive a modification by the Home Affordable Modification Program. Lastly, during the forbearance program, the lenders have no right to amass late charges to the borrower.
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