Foreclosure moratorium means more time for loan modifications

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With Fannie Mae and Freddie Mac extending their foreclosure moratoriums, and more big-hitting banks joining the foreclosure holiday list daily (see our article from today on the foreclosure suspensions) more homeowners have time to negotiate their mortgage payments and modify their mortgage loan. Because the loan modification process can be time consuming and painful these extra weeks and months can mean the difference between losing your house or getting a loan with better terms through a loan modification.

There is lots of information out there today about loan modifications and we’ve covered the process extensively here at Blown Mortgage as well. In fact, we’re an affiliate for a great product on loan modifications that teaches you what you need to know to manage the loan modification process yourself and successfully modify your mortgage. While we do get compensation for each individual we refer to the product we’ve reviewed it and have heard great things from people that have used it.

So, if you’re behind on your mortgage take advantage of this extra time to contact your lender and modify your mortgage. If you want to learn how to do loan modifications on your own sign up here. If you want to learn the first steps in the process read our posts:

Loan Modifications on Your Own
Get Your Loan Modification Approved by Properly Completing the Monthly Expense Worksheet

Here’s more about the foreclosure moratorium:

Fannie Mae had previously suspended foreclosure sales and evictions over the holiday season. Sales resumed in January but are now being halted again until March 6. The moratorium on evictions, set to expire at the end of February, has also been extended until March 6. Fannie Mae has also adopted a national Real Estate Owned (REO) Rental Property Policy allowing renters residing in Fannie Mae-owned foreclosed properties to remain in their homes or receive transitional financial assistance if they choose to seek new housing.

Freddie Mac is immediately suspending all foreclosure sales of single family and 2-4 unit properties through March 6 as well. The suspension, which provides servicers with more time to help troubled borrowers find an alternative to foreclosure, does not apply to vacant properties. Lenders servicing Freddie Mac mortgages
already have broad authority to provide forbearance to borrowers who are not yet delinquent. In addition, permanent rate reductions, mortgage term extensions, forbearance of principal or other modifications are available to borrowers who are already delinquent.