MODIFYING YOUR MORTGAGE

DO YOU HAVE A HAMP LOAN MOD WITH AN ADJUSTABLE INTEREST RATE? IF SO, IT’S TIME TO LOOK INTO MODIFYING YOUR MORTGAGE AGAIN

Mortgage-finance companies Freddie Mac and Fannie Mae said that they are changing the way they modify some loans in anticipation of an influx of borrowers struggling to make payments on loans with rising interest rates, The Wall Street Journal reported yesterday. The affected borrowers previously received loan modifications through the government’s Home Affordable Modification Program. Since modifications typically lowered borrowers’ interest rates for five years before the rates tick back up, some observers have worried that rate resets could send some borrowers back into default. Freddie Mac in a regulatory filingTuesday said that by July 1, 2015 servicers will need to evaluate borrowers for a new mortgage modification if they are more than two months behind on mortgage payments. A Fannie Mae spokesman said that the company would announce similar changes in coming days.

The majority of HAMP loan modifications given out in the past few years have provisions that call for an interest rate hike after several years of payments at a fixed interest rate. These mortgage modifications will be reseting to higher interest rates shortly. In these cases, your mortgage payment will go up. If you have a HAMP modification with an interest rate set to go up, give me call to come in and talk about a new mortgage modification to keep your payment low or lower it further. Do not try this on your own! You do not have the tools at your disposal to determine all of the available programs for your type of loan and what your payment should be. These guidelines change weekly.

Your mortgage company is not going to reach out and offer you better terms or assistance after you have already gotten a loan modification. However, we can assure you that we will get you the best modification you can qualify for!