Fannie Mae and Freddie Mac May Allow Some Deeds-in-Lieu

Freddie Mac Deed in Lieu of foreclosure

By Sean Coffey, Program Manager, Foreclosure Help

Bloomberg reports that Fannie Mae and Freddie Mac recently announced a change to assist homeowners who are current on their mortgages but who are upside down and now need to move.

The title of the article “Fannie To Allow Walkaways by On-Time Borrowers: Mortgages”  is a bit dramatic, as homeowners will still need to demonstrate a hardship, and the deed-in-lieu of foreclosure (handing the house back to the bank) will still be reported to credit agencies.  In addition, Fannie Mae and Freddie Mac may also require homeowners to pay back some of the difference between the outstanding mortgage balance and the current value of the property if they have the means.

Fannie Mae and Freddie Mac have been criticized in the past because of their reluctance to use principal right downs to assist homeowners.  Kurt Eggert, the author of “Limiting Abuse and Opportunism by Mortgage Servicers” suggested in the Bloomberg article that Fannie Mae and Freddie Mac were “playing catch-up” and that this change should have happened earlier.

According to the article, the new program is aimed at homeowners who have remained current on their mortgages, but need to move out of their home because of a job offer, deployment, illness or other hardship.  Homeowners will also need to demonstrate that they have a 55% percent debt-to-income ratio.

In their report for 3rd Quarter 2012, (FHFA: “Foreclosure Prevention Report Third Quarter 2012“) Fannie Mae and Freddie Mac reported allowing 3,994 deeds-in-lieu during Q3 2012.   In comparison, the two agencies allowed 33,972 short sales.

There were 145,000 delinquent Freddie Mac/Fannie Mae mortgages in California as of September 30, 2012 (out of a total of 3.5 million Fannie Mae, Freddie Mac loans).

To read more about the changes, visit Bloomberg: “Fannie To Allow Walkaways by On-Time Borrowers: Mortgages

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.   Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org. Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org. Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.

Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

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