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Friday, June 12, 2009

How to Approach Fannie Mae and Freddie Mac For Loan Modification

The fluctuating US economy and the recession have put the people under stress. The people those who have taken loan for themselves are really worried due to the worldwide slowdown. But the US Federal Government has introduced many plans to relieve these people. The 2009 Stimulus Package offers them the option of Fannie Mae & Freddie Mac loan modification. This option helps the owners save their homes from foreclosures. But the question is - how to apply for a Fannie Mae loan modification?

Here are some tips to help you approach Fannie Mae & Freddie Mac for the same:

* First of all you need to check whether you are eligible to apply for one or not. The eligibility condition set by the government is that your loan deed must be owned or / and insured by Fannie Mae & Freddie Mac.

* The other thing you need to check is that your mortgage value must be greater than the current market value of the home over 105%.

* Once you meet the eligibility criterion, you must draft a hardship letter to the bank if you have missed any of your monthly payments. This does not mean that the others can not apply for the modification. This scheme is open for all.

* You may directly contact the bank through a call at their loan modification department or by visiting their official website.

* You may also seek help from the counselors appointed by the HUD. These counselors will help you in all the dealings with the bank in a more professional manner. They do not even charge you anything for their help.

Fannie Mae loan modification will surely help you with its following benefits:

* This would offer you lower rates of interest. The rates have been decreased from 6.5% to 5.16%.

* The monthly payments have been restricted to 31% of your gross monthly income under the scheme.


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