There have been a lot of reports in the media lately about the newest plan from the government to help people refinance or modify their loans. Details of these plans were announced today. I thought you might want some information to pass along to your clients.

The government has just come out with two programs that might benefit you. One is the Home Affordable Refinance Program & the other is the Home Affordable Modification Program. Here is a web site with a lot of information about both: http://www.financialstability.gov/

The refinance program is great for people who are making their payments on time but struggling. They want to refinance but their home values have declined and they no longer meet traditional guidelines for refinancing. These loans must be owned by FNMA or FHLMC. The first thing you need to do is to find out if your first trust is currently owned by FNMA or FHLMC. From the web site above click the borrower information link, then click the “find out if you are eligible” link. From there you can click links to both FNMA & FHLMC and fill out on line information forms to see if they own your loan. Also from this page you can click the next steps link that tells you what you need to do to move forward.

The Modification program is for people who are struggling paying their mortgage. They may be current on their payment or they may have missed a payment already, their loan does not have to be owned by FNMA or FHLMC.

Once a homeowner determines which option ( if any ) applies to them they need to gather up their financial information and call their loan servicer – where they make their payments – and discuss their situation.

Please keep in mind the loan servicer may not be set up to accommodate people yet - they just got this information today.

I hope this helps. Please call me if I can be of any help with mortgage financing for you or your clients.

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Chris Jordan

Licensed Mortgage Banker

Silver Spring Branch

First in Customer Service...

8601 Georgia Avenue, Suite 701

Silver Spring, MD 20910

Phone: 301-562-9540 x 104

Fax: 301-576-5810

Direct: 301-257-8080