In recent months, banks and financial advisors have been reporting an unusual trend. The federally owned and operated mortgage securities bank, Fannie Mae has been quietly encouraging smaller banks--Bank of America and Chase, for instance-to foreclose on homeowners. This comes at a time where the federal government has been making major inroads in helping troubled homeowners behind on mortgage payments save their homes with programs like HAMP- Obama home affordable mortgage program.
What guidelines are in place for this government-sponsored program? While there are specific criteria regarding your situation that will be examined for approval, there are basic guidelines that one must meet in order to apply.
Fannie Mae-- a federally owned and publicly traded securities bank that owns and is responsible for hundreds of billions of dollars of mortgages-has been pushing banks to foreclose on homeowners who are more than 12 months behind on their mortgage payments. Many see this as contradictory of a federal government that claims to be working to help homeowners keep their homes amidst continued hardship. Across the nation, many homeowners are plagued by high unemployment and an economy that has been unrelentingly sour and prone to starts and fits over the last half decade.
The Detroit Free Press first reported on Fannie's foreclosure scandal, releasing thousands of confidential documents between Fannie Mae and lenders. The documents, which detailed new rules for lenders working with Fannie Mae, urged lenders to take more dramatic steps with borrowers drastically behind on their mortgage payments. The most astounding on the new rules for banks tacitly implies that lenders stop dragging their feet and foreclosure on seriously delinquent mortgages.
The FHA loan modification program under the Housing and Economic Recovery Act has fallen flat on its face since its launch in October, helping only handfuls of families across the country. No progress towards recovery for the housing market can be made unless loan modification is made more accessible for those who have property covered by FHA loans.
What guidelines are in place for this government-sponsored program? While there are specific criteria regarding your situation that will be examined for approval, there are basic guidelines that one must meet in order to apply.
Fannie Mae-- a federally owned and publicly traded securities bank that owns and is responsible for hundreds of billions of dollars of mortgages-has been pushing banks to foreclose on homeowners who are more than 12 months behind on their mortgage payments. Many see this as contradictory of a federal government that claims to be working to help homeowners keep their homes amidst continued hardship. Across the nation, many homeowners are plagued by high unemployment and an economy that has been unrelentingly sour and prone to starts and fits over the last half decade.
The Detroit Free Press first reported on Fannie's foreclosure scandal, releasing thousands of confidential documents between Fannie Mae and lenders. The documents, which detailed new rules for lenders working with Fannie Mae, urged lenders to take more dramatic steps with borrowers drastically behind on their mortgage payments. The most astounding on the new rules for banks tacitly implies that lenders stop dragging their feet and foreclosure on seriously delinquent mortgages.
The FHA loan modification program under the Housing and Economic Recovery Act has fallen flat on its face since its launch in October, helping only handfuls of families across the country. No progress towards recovery for the housing market can be made unless loan modification is made more accessible for those who have property covered by FHA loans.