2013 Streamlined Loan Modifications Now Available at Fernandez Law Group

In a recent press release dated March 27, 2013 the Federal Housing Finance Agency announced plans for a New Streamlined Modification Initiative.

This new program will allow borrowers and servicers both to benefit and the loan modification process has been greatly simplified.

On March 27, 2013 the Federal Housing Finance Agency announced a New Streamlined Modification Initiative in a news release which is designed to help further minimize losses while also helping troubled borrowers with yet another option to help them avoid foreclosure and stay in their homes. The program isn't scheduled to begin until July 1, 2013.

Once that date passes, servicers will be required to offer eligible borrowers who are at least 90 days delinquent on their mortgage an easy way to lower their monthly payments and modify their mortgage without requiring any financial or hardship documentation.

Administrative barriers once associated with document collection and evaluation can now be eliminated with the new Streamlined Modification Initiative. Borrowers who are eligible to participate will be required to demonstrate an ability and willingness to pay by making just three trial payments in a row on time. After that occurs, the mortgage will be permanently modified.

Additional benefits may be awarded to homeowners who continue to work with their servicer and homeowners are encouraged to do so in order to evaluate all available options to prevent foreclosure. We recommend consulting an experienced foreclosure defense attorney to help ensure your rights and all available options are presented to you before making any deal with a mortgage servicer. We are here to help you protect your interests.

Building on the principles of the Servicing Alignment Initiative, the Streamlined Modification Initiative also encourages servicers to resolve any delinquencies earlier on and in a more consistent and expeditious manner in order to keep more people in their homes while also helping to minimize further losses to Fannie Mae, Freddie Mac, as well as taxpayers.

Set to expire on August 1, 2015, the program is available to any homeowners whose loans are owned or guaranteed by Fannie Mae or Freddie Mac, who have completed over 2.7 million foreclosure prevention transactions, including 1.3 million loan modifications - all since being placed into conservatorships.

The Tampa Loan Modification Attorneys and Foreclosure Defense team at Fernandez Law Group look forward to having the new program as another option for homeowners who are facing foreclosure and we look forward to working with you with the new streamlined process now as well as the existing options.

For more information on the new FHFA Streamlined Modification Initiative, take a look at ourFHFA SMI (Streamlined Modification Initiative) Frequently Asked Questions.