Loading ...Freddie Mac to the Foreclosure Rescue
August 1st, 2008 by Tyler | 738 views |
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Freddie Mac is doubling the amount of money it pays loan servicers for each successful mortgage workout among other measures to keep struggling borrowers out of foreclosure.The mortgage financier is also giving more time to negotiate workouts in states with fast foreclosure processes and will reimburse servicers for door-to-door outreach.
Freddie will pay $500 for each repayment plan and $800 for each loan modification on Freddie-owned mortgages. Servicers will receive $2,200 for each short sale where Freddie accepts less than the full amount owed on the mortgage.
In some states and Washington, D.C., the government-sponsored entity will give up to 10 months from the due date of the last payment to find sustainable workouts for strapped borrowers. These states allow a lender to foreclose in less than 10 months.
These new policies go into effect TODAY, August 1st.
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This entry was posted on Friday, August 1st, 2008 at 1:05 pm and is filed under Foreclosure, Real Estate, Real Estate Washington DC, Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
September 4th, 2008 at 7:33 pm
Loan workouts are going to be the wave of the future to keep people in their homes. As more and more investors realize mortgage holders are drowning in payments they can’t handle. We see SO many people facing foreclosure everyday. The most successful foreclosure stop procedures have proven to be loan modifications. Our team of retired bankers, attorneys, professional financial insiders and community volunteers all agree this type of workout will be in huge demand in the coming months and years. http://www.1-800-stopforeclosure.com