National Mortgage News: Lower HAMP Payments
by Sarah from Montgomery, AL and by Mark from Dayton, OH
National mortgage news! Freddie Mac and Fannie Mae to re-evaluate borrowers for lower HAMP payments, making them more affordable: Fannie Mae and Freddie Mac are biting their fingernails. Thousands of mortgages modified under the Making Home Affordable Modification Program (HAMP) in 2009 were scheduled for interest rate hikes after the fifth year of the term.
Freddie and Fannie to Re-evaluate Borrowers for HAMP Payments (Con't)
You'd think the anticipation of rate adjustments would be making Fannie and Freddie feel giddy. But the mortgage giants are aware that many homeowners won't be able to afford higher house payments.
The last thing Fannie and Freddie want is a boatload of foreclosed homes on their books.
So beginning July 1, 2015 (or possibly sooner), HAMP borrowers with Freddie Mac mortgages will be evaluated by loan servicers for streamlined modifications if they are 60 days delinquent within the first 12 months following the rate increase.
Homeowners experiencing difficulty making the increased HAMP payment but who are less than 2 months behind might be eligible for a standard (vs streamlined) modification, as well as borrowers who are current.
Fannie Mae is also expected to announce a similar plan to help their HAMP borrowers avoid foreclosure.
Now for a question from Sarah, sole borrower on her mortgage, yet the loan servicer approved a loan modification without her permission. SAY WHAT?
Lastly, Mark asks for affordable refinancing options for disabled borrowers.
Mortgage Loan Modification Without the Borrower's Signature By Sarah from Montgomery, Alabama
My ex-husband got the house in the divorce decree over six years ago. Although I was the sole borrower, I signed the quit claim deed.
According to the decree, he had 12 months to get a loan in his name, if possible.
The HAMP program says they will allow for a modification without my signature due to the divorce, although the mortgage is only in my name. They are using his income to qualify for the modification.
How is this legal? How is it legally binding to hold me to a modified agreement that I did not agree to and the mortgage is only in my name?
Ask Kate answers: Mortgage Loan Modification Without the Borrower's Signature
Without a doubt, quit claim deeds, often required in divorce, certainly can cause heartache down the road.
In your case, you are obligated on a mortgage that is tied to a house that you no longer own.
It also looks like your ex-husband was given 6 months to finance the home in his name. Yet six years later, the mortgage is still in your name. Sigh.
Whether or not it is legal
to modify a mortgage without permission from the actual borrower, I can't say, not being an attorney. Regardless, someone in authority has authorized
this action! What a mess!
I recommend consulting an attorney to learn your rights and also writing your elected officials to report the bad behavior of the loan servicer and request help.
At this page, you'll find the details for contacting Washington DC and your state government, and find out how to submit a complaint to the Consumer Financial Protection Bureau
, established by Congress to protect consumers.
Disabled Homeowner Needs Affordable Mortgage Financing By Mark from Dayton, Ohio
I have no idea what's available help-wise to disabled people who want to refi their home.
I was just recently awarded Disability at 62 years old for a heart condition.
I've been taking care of my 86 year old mom for 10 years now who is also Disabled with severe COPD.
I have a 4.5% fixed rate currently but want to refinance down to 3.5% or 3.75% before the rates move up.
What options are available to us? Where do I go first for refi answers?
Ask Kate answers: Disabled Homeowner Needs Affordable Mortgage Financing
Check with your local Housing and Urban Development (HUD) office to see if Ohio offers mortgage refinance programs with below-market interest rates to disabled homeowners. I believe the closest office to you is in Columbus.
Contact Local HUD Office for Affordable Mortgage Payment Options
Here is their address and phone number:
Columbus HUD Field Office in the Bricker Federal Building
200 North High Street, 7th Floor
Columbus, OH 43215
Contact Loan Servicer for Affordable Mortgage Payment Options
Secondly, you could contact your loan servicer to discuss your need for a more affordable mortgage payment due to medical hardship. They may suggest a loan modification, not a refinance. This program, HAMP, falls under Making Home Affordable
, a joint program of HUD and the US Treasury.
You can also discuss a refinance during the conversation. If you have less than 20 percent equity, ask specifically for a HARP refinance to avoid mortgage insurance
Ask Friends and Relatives for Referrals
HARP, unlike HAMP, is not restricted to your current loan servicer. If your mortgage is eligible for HARP, you are free to use any participating lender. One of the best ways to find and compare lenders is by asking for referrals from trusted friends, neighbors, and relatives.
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