At De Novo Law Firm, our loan modification attorneys start the loan modification analysis by considering who owns the loan.  Chances are that your loan is backed by Freddie Mac or Fannie Mae. Both entities are government-sponsored enterprises (GSEs), meaning they are privately owned but receive government support.   Freddie Mac and Fannie Mae work with lenders to create feasible loan option to borrowers.

In seeking help for a loan modification it is important to know who owns your loan.  Freddie Mac and Fannie Mae backed loans are bought by mortgage bankers who sell and resell loans to borrowers and other investment banks.  For inquiries beyond your loan servicer, you may input your information online to see whether or not your loan is in fact Freddie Mac through the following link https://ww3.freddiemac.com/corporate/, or if it is a Fannie Mae owned loan by searching the following http://www.fanniemae.com/loanlookup.   If your loan is not listed with either Fannie Mae or Freddie Mac, it is privately owned and is subject to both government assisted programs such as HAMP as well as private modifications.

If your loan is owned by Fannie Mae or Freddie Mac, your modification terms may be more narrow.  These lender may capitalizing arrears and make you current(adding any outstanding payments and interests to existing mortgage balance), adjust interest rate, and or extend the term of mortgage to 40 years.  Eligibility is determined by an inability to make payments, have enough income to afford modification payments, and you have had your mortgage for a minimum of twelve months. Similarly, Fannie Mae’s loan modification involves the following options: changing the mortgage loan type, extending the term, reducing the interest rate, and adding past-due amounts to unpaid principal balance.  In addition to qualifying for the modifications set up by either company, borrowers may also be eligible for a Freddie Mac or Fannie Mae HAMP modification(Home Affordable Modification Program).  Both Freddie Mac and Fannie Mae offer similar loan modification options but vary slightly in how they rank the modifications.  For more information on your potential modification, contact our office immediately to discuss your loan options.

In order to obtain the best possible modification, it is important that you be aware of all potential types of modifications.  All borrowers facing hardship should be proactive in assessing their needs and communicating that with their lender as soon as possible in order to ensure a secure and stable means of keeping your home and modifying your loan.

If you are considering a modification or are encountering difficulties in your payments, there are several options available to you. Call us today at (877) 346-7411 for a free analysis of your legal options.

 

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