Fannie Mae Loan Modification

Fannie Mae is a Government Sponsored Enterprise ( GSE ) and is a common note holder for conforming mortgages in the United States. Many times they set standards which are followed by other investors or loan originators due to their influence in the market. Fannie Mae has strict guidelines when it comes to loan modifications and borrower work out options.

Here are a few things to consider when applying for a loan modification.

• How much is owed and what is the home worth? If the home has too much equity or is too underwater, it may be denied for a home retention option.
• If the account is current the modification may be denied based on it being affordable.
• If the payment can’t be lowered then a modification likely will be denied.
• How many modifications have been granted on the account in the past? There are regulations and time frames in place for the opportunity to potentially obtain another modification.

Generally when modifications are approved the accounts become escrow which means that the mortgage payment will include principle, interest, taxes, insurance, and HOA. When an account is very past due it may not be possible to lower the payment due to the arrers being capitalized back into the loan. Principle deferrals and forgiveness are not guaranteed to be approved and are only applicable to certain accounts based on the Loan to Value, borrower finances, and many other factors.

If you have questions about work out options, short sales, or anything at all, pease fill out the form below or call 1-800-692-9960 and a specialist will be in touch with you shortly.