Freddie Mac Gives More Guidance On Principal Reduction Modifications
Freddie Mac Principal Reduction Modification in April 2016.
Freddie Mac has now announced new support for these loan modifications.
The Principal Reduction Modification is a temporary offering, designed to help seriously delinquent, underwater borrowers who are most at risk of foreclosure, mainly in neighborhoods that were hit the hardest by the housing crisis. The program allows homeowners to obtain a loan modification that permanently forgives a portion of their mortgage debt. They are only being offered until December 31, 2016.
What are the Qualifications?
What are the qualifications for one of these loan modifications? Homeowners are eligible only if their mortgages are more than 90 days delinquent as of March 2016, the principal balance is $250,000 or less, more than 115% of the home’s total value is owed inclusive of arrears, and the homeowner lives in the home.
The modifications are being offered even if the homeowner is already in another loan modification. To qualify, however, homeowners must make three payments under a Trial Period Plan before being provided with a permanent loan modification.
Freddie Mac’s guidance page is here: Freddie Mac Principal Reduction Modification
Also review this link for the Principal Reduction Modification Fact Sheet
Culik Law has helped homeowners to obtain loan modifications from Freddie Mac, Fannie Mae, and even private investors. Contact us today to see if we can help.