Thursday, January 26, 2012

Did You Know...

FANNIE MAE and Freddie Mac have recently extended their forbearance programs. These programs are designed to relieve  homeowners who find themselves unemployed or have other hardships. Under this program a lender agrees not to foreclose on a property and provide a grace period for the borrower or a reduction in mortgage payments.

However, there are a few adverse effects to this program. First, the interest on the loan still accrues at the normal rate, which means an increase in the total debt amount. Also, the lender can still report the mortgage as delinquent, which can hinder the borrower from qualifying for more credit or a refinance. You can find more information about this program here.

Borrowers are encouraged to seek assistance from a local housing councilor or contact HUD for help.

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