Fannie Mae sets new rates effective October 14

Fannie Mae sets new rates effective October 14

Fannie Mae is set to raise the benchmark interest rate for its Standard Modification program. Fannie Mae will raise its required interest rate for standard modifications from 4.375% to 4.5%.  The rate was lowered from 4.5% to 4.375% on Sept. 15, but will now rise again in one week. Fannie Mae announced the change on Tuesday in an email sent to its servicers.

When the program began in Jan. 2012, Fannie’s benchmark interest rate was 4.625%. Fannie lowered the interest rate to 4.25% in Sept. 2012, before dropping it to 4% on Dec. 1, 2012.

“Fannie Mae Standard Modification interest rate is not determined on a preset schedule,” Fannie said in the note to its servicers. “The interest rate is subject to periodic adjustments based on an evaluation of prevailing market conditions.”

Fannie also noted that any loan modification requests that were approved at the previous rate are not eligible to be resubmitted for approval under the new modification rule

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80,000 Foreclosures prevented!

The Federal Housing Finance Agency (FHFA) indicated in its report on foreclosure prevention  for Q2 2014 released on September 24, that Fannie Mae and Freddie Mac  prevented nearly 80,000 foreclosures nationwide in the second quarter, raising the total number of foreclosures prevented since the start of the conservatorship in September 2008 to 3.3 million.

fThe measures taken by the two GSEs to prevent foreclosures have helped about 2.7 million borrowers remain in their homes in the last six years, with approximately 1.7 million of those borrowers receiving permanent loan modifications. The number of foreclosures prevented is down 10 percent from Q1, when GSE measures stopped almost 89,000 foreclosures.

FHFA reports as well that about 37 percent of those who received permanent loan modifications were able to reduce their monthly payments by more than 30 percent in second quarter.

Loan Modification Options

Loan Modification Options

Loan Modification Options

By Sandy Flores

Special to Excelsior

 Many homeowners who are facing very difficult financial situations, have options to avoid foreclosure. Here are some of the most common:

 Repayment plan, known in English as “Forbearence.” Under this option, with approval from your lender, it may allow you to reduce or suspend payments for a short period of time. Following this abstention, you start again with your regular payments, including the additional amount that accumulated as a result of this agreement. This option will let you stay on their property at reduced or temporarily, allowing you to stabilize financially suspended payments.

Loan modifications. This is another option if you do not have enough income to make your payments current. The lender in its sole discretion has the option to change the terms of your original loan to suit a payment that is more accessible to their financial situation. These changes usually begin with a trial period, and may qualify to progressively otherwise modified for a longer time. This form will also allow you to keep your property more affordable payments.

Refinancing. This is an exclusive option for those homeowners who are current on their mortgage payments, but nevertheless need to benefit from the low interest rates being offered today to lower your monthly payments. The homeowner can refinance today your property, even if the balance due is greater than the current value of your property.

Under the program Affordable for Homeowners HARP Refinancing, the owner will be able to refinance and thus qualify for a new mortgage loan that allows affordable monthly payments … To qualify under this application in this program the mortgage loan has I be insured by Fannie Mae and Freddie Mac

Short Sale / HAFA Short Sale. This is an option which allows you to not qualify options Repayment Plan or Modification of your loan. By applying for and negotiating a short sale, your lender will allow you to sell your property at current market value, even if it sells below the amount you owe on your balance. Under the terms of a short sale, your lender may not go after you for the difference owed. The HAFA grant him a monetary incentive of $ 3,000 and many of the institutions are also offering additional financial incentives to homeowners who qualify to cover the costs of moving.

The scriptures in lieu of foreclosure or in English “Deed in Lieu of Foreclosure” is another option when Repayment Plan Loan Modification and are options which you may not qualify. In this option, your lender may accept voluntary transfer of title to the property and avoid the impact of foreclosure, as well as the expenses related to the embargo.

Normally, debt forgiveness results in taxable income, but under this Act Relief Mortgage Debt Cancellation of 2007, taxpayers may exclude certain debt become represented in their primary residence up to two million dollars (one million dollars for one person married filing a separate tax return).

The Act allows exclusion of income realized as a result of the modification of the terms and conditions of the mortgage, short sale, or foreclosure on your principal residence.

For more information, consult a professional with experience in Real Estate Loan Modification and / or short sale, as well as seek advice from a tax professional. To find help for free near you, you can call the Internal Revenue Service (IRS) at 1-800-829-1040. You can also visit the website: www.ayudaparapropietariosdecasas.com .