Fannie Mae Reminders On Home Loan Modification, Foreclosure Eviction Policies

Syndicated real estate columnist Kenneth R. Harney gives this reminder on Fannie Mae's recent change in its loan modification policy:

• [Y]ou no longer have to miss two to three months of payments before your mortgage company can modify the loan terms you can no longer afford. Starting immediately, Fannie Mae, the mortgage giant that has an estimated 18 million home loans in its portfolio or in mortgage bond pools it guarantees, will allow borrowers who face imminent difficulties to request "early workout" loan alterations, even if they have never been late.

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• Under Fannie Mae's revised approach, servicers of the company's loans nationwide will be required to inform borrowers that if they are "reasonably" certain that changes in their income will cause them to miss mortgage payments, they might qualify for an advance loan modification -- before they fall behind.

For more, see Get Mortgage Relief at the Yellow Light Rather Than Red.

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The Connecticut Law Tribune reports:

• [Fannie Mae] Officials informed legal aid agencies that it had decided to suspend eviction proceedings against tenants in good standing who live in properties facing foreclosure. And starting on Jan. 9, the renters will be able to enter into a new lease with Fannie Mae and stay at least until a buyer is found for the property.

• “The goal of the suspension is to ensure that no renters are put out of their homes during this period” until Jan.9, said Brian Faith, a Fannie Mae spokesman. “We estimate that 7,000 to 10,000 families have been able to stay in their homes as a result of the foreclosure and tenant eviction suspension.”

For more, see Tenants Stay In Homes For The Holidays (Legal aid agencies win eviction concessions from Fannie Mae).