Knoxville Loan Modifications – FHFA Announce New Streamlined Process

imagesFor many Knoxville homeowner facing foreclosure on their Knoxville home, a loan modification is often the first thing homeowners try. Unfortunately, in the past, Knoxville loan modifications have been plagued with issues. Hopefully, that is all about to change. At the end of March, the Federal Housing Finance Agency (FHFA), announced an new streamlined loan modification program for all loans owned by Fannie Mae and Freddie Mac. The new streamlined loan modification program was started to help the process be easier for borrowers who are behind on their mortgage payments and to prevent foreclosures from happening. The program goes into effect on July 1, 2013 and ends on August 1, 2015. At that time, all loan servicers will be required to offer a loan modifications to all borrowers who are 90 days or more behind on their payments. The new modification process will allow less documentation than in the past, borrowers will no longer have to show financial or hardship documentations in order to be approved. For Knoxville homeowners to be eligible, they must meet the following requirements: -The homeowner must be at least 90 days late and up to 24 months late on their mortgage payment. -The mortgage has to be at least 12 months old, and have a loan to value ratio equal or greater to 80%. -The mortgage cannot have been modified more than two times in the past. -Finally, the loan must be owned by either Fannie Mae or Freddie Mac. To see if you loan is owned by Fannie Mae, click here. To see if your loan is owned by Freddie Mac, click here. If you are a Knoxville homeowner that meets these requirements, contact your loan servicer. If you are eligible, you will receive a letter breaking down the terms of the modification. If you accept the terms, you will be given a three month trial to be able to make the new payments. If you are able to, your loan will be permanently modified. Are you a Knoxville homeowner facing foreclosure? Are you unsure of what you options are? Give my team and I a call today to hear your options at 865-696-9002 or via email at [email protected]. Whether you decide to do a loan modification, short sale, or deed-in-lieu of foreclosure all of my services our done at no cost to you.

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