Fannie Mae Extends Moratorium on Home Foreclosures
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Fannie Mae has announced it is extending — through March 31, 2009 — its moratorium of all eviction proceedings involving Fannie Mae funded mortgage investments, as the government-sponsored enterprise (GSE) implements new initiatives aimed at helping more distressed homeowners save their homes.
In making the announcement, Fannie Mae also issued special foreclosure sale requirements in response to the Obama administration’s Making Home Affordable program. According to the GSE, a foreclosure sale may not occur on any Fannie Mae loan until the loan servicer verifies that the borrower is ineligible for a “Home Affordable Modification” and all other foreclosure prevention alternatives have been exhausted.
Through its Home Affordable Modification Initiative, Fannie Mae will work with loan servicers across the United States to help distressed borrowers modify their current loan into a mortgage that is more affordable and sustainable. Loan servicers participating in the program may reduce interest rates, lengthen the payment time frame or take other steps, such as principal forbearance, to bring the monthly payments down to as low as 31 percent of the borrower’s gross (pre-tax) income.
What Borrowers Need to Know:
- To modify a loan through Home Affordable Modification, it must be for your primary residence.
- You need not wait to become delinquent with your payments — a plan can be put in place as soon as you think you may have trouble making your mortgage payment.
- The amount you owe on your mortgage must be less than or equal to $729,750.
- The program is for mortgages originated prior to January 1, 2009.
- Certain eligibility requirements, including attesting to a financial hardship, may apply in some cases.
To ensure borrowers currently at risk of a foreclosure have the opportunity to apply for a Home Affordable Modification, Fannie Mae servicers have been directed not to proceed with a foreclosure until a borrower has been evaluated for the program.
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Ralph R. Roberts, GRI, CRS |
I am fortunate enough not to have a mortgage. I mostly listen to the radio show to hear Jerry do the sound byte clips out of the break. And also for info. in case someone else needs it.
[...] ever you decide, act quickly, there may be a temporary moratorium on foreclosures but that will not last forever. Posted By: Ralph Roberts @ 3:22 am Filed under: [...]
Today I called fannie mae and they said there is a moratorium until May 1 on foreclosures and evictions but when she doubled checked she said it does not apply to me because the house was already foreclosed on, I think it is confusing because an eviction only can occur when the house is already owned by the bank but she said it does not apply to me because it is not my house anymore, any way, I planned to leave soon but I would not like to be lock out of the house.