The Federal Housing Finance Agency announced plans for allowing Fannie and Freddie to modify more of their loans. The mods will lower interest rates or lengthen the repayment schedule with the goal of bringing payments below 38% of household income. To qualify, borrowers must:
- Be 90+ days late on their payments
- Show affidavit of financial hardship
- Not have filed for bankruptcy
- Have taken out the mortgage before Jan 1, 2008
The more favorable terms will apply for a 90-day period, and if you successfully make payments for those 3 months, then the modifications get locked in. To apply, call 888-995-HOPE.