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Fannie and Freddie Extend Unemployed Mortgage Relief Programs

Posted by Benjamin Dona on Saturday, January 14th, 2012 at 5:06pm.

Fannie and Freddie Extend Unemployed Mortgage Relief ProgramsFannie Mae and Freddie Mac announced plans last week to extend their mortgage relief programs for unemployed borrowers while they are out of work. According to Fannie's guidance letter, banks can offer unemployed borrowers up to six months of lowered or skipped payments without seeking prior approval and up to 12 months with a formal approval.

Fannie Mae will start its program extension on March, 1st. Freddie Mac will begin its offering of the extended forbearance period starting on February, 1st. To be eligible, the banks must determine if the "borrower" has less than 12 months worth of mortgage payments in savings and has monthly housing expenses above 31% of their incomes. After the extension period expires, if the borrower is still unemployed or unable to make payments, other options like a permanent loan modification or a short sale will have to be considered.

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5 Responses to "Fannie and Freddie Extend Unemployed Mortgage Relief Programs"

Debbie Gartner wrote:
Bravo for Fanny and Freddie. Given the lack of oversight of the loans that they made which caused so much havoc in 2008, it's time that they do the right thing for Main Street America, so many of whom are out of work and need this kind of relief, given the tight job situation across the country.

Posted on Monday, January 23rd, 2012 at 10:53pm.

Jan wrote:
It will be interesting to see how many people actually qualify for these programs. If it is anything like the mortgage modification programs we have seen here in Minneapolis it will be struggle for homeowners to qualify.

Posted on Tuesday, February 7th, 2012 at 11:37pm.

Joe wrote:
Hopefully extending this program will actually help homeowners in trouble and prevent another spate of foreclosures in 2012. The pessimist in me fears this will turn into yet another huge federal moneysink that will come back to haunt us in the future

Posted on Friday, February 10th, 2012 at 4:27am.

Dan Boyle wrote:
The extension is probably necessary just to keep reigns on the foreclosure rate. I'm tired of GSE "programs" but, at this point, we're stuck.

Posted on Tuesday, March 20th, 2012 at 4:13pm.

Carmen Brodeur wrote:
I hope these programs actually make a difference. I hear so many people tell me that they applied but were denied. I have yet to meet someone who qualified.

Posted on Monday, March 26th, 2012 at 1:54am.

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