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Loan modifications! - Stated loans - Fannie/Freddie

Loan modifications, recently in the news due to generous arrangements made with Indymac borrowers who were offered interest rates as low as 3%, are now widely made! And I am pleased to let you know that I now offer a dedicated Loan Modification Service, backed by an expert team of negotiators with 20 years of experience who have well-established contacts with all mortgage lenders. If you, or anybody you know, can benefit from this I recommend you contact me asap because the future of loan modifications (on favorable terms) is unclear. Have a good week folks!.... Paul

Fannie Mae and Freddie Mac rescue
The government has announced a Fannie Mae and Freddie Mac rescue. I will report on the implications next week. Read the Treasury statement.

Mortgage rates ease
"Mortgage rates eased a bit over the holiday-shortened week following release of economic data that suggest consumer spending may slow,” said Frank Nothaft, Freddie Mac vice president and chief economist. Freddy Mac rate surveys
1-3 week trend: Down 21+ days: Flat Market commentary
What is a Loan Modification?
In short, a Loan Modification is a permanent change in one or more of the terms of a mortgage, resulting in a payment the mortgagor can afford. This can involve interest rate reduction, loan amount reduction, change to a different type loan, and other considerations.

Who is eligible for Loan Modification?
There are no fixed rules (yet) for loan modifications. See also my blog/newsletter of Aug 21st. Here are some typical cirumstances that preclude a refinance on affordable terms, can lead to a foreclosure, and could compel a lender to modify the terms of the mortgage:
  • Current or past mortgage arrears
  • Negative equity
  • Decrease in income
  • ARM that will or has re-set at a high rate
  • Low credit scores or other credit issues
  • Increase in personal expenses (medical, emergencies, etc.)
Stated Income loans
Stated income loans are still available for owner-occupied and investment property. But the pricing is increasing, and the lending criteria continue to tighten. The new housing bill, which comes into effect October 1st has a further limiting effect. Many lenders are cancelling their programs. If you have a need, contact me without delay.

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The less you talk, the more you're listened to.
(Abigail Van Buren)
Posted Sunday Sep 07