Freddie Mac Announces Immediate Availability of Streamlined Modification for Delinquent Borrowers
Freddie Mac recently announced it is making its new Streamlined
Modification program immediately available to all eligible borrowers
nationwide in order to expedite financial relief for potentially thousands of
distressed families.Freddie Mac's Streamlined Modification program had
originally been scheduled to start on July 1, 2013.
announcement extends to the entire country Freddie Mac's decision to make the
Streamlined Modification immediately available to eligible Hurricane Sandy
Under the Streamlined Modification program, servicers are
required to send modification offers to borrowers who are at least 90 days, but
no more than 720 days, delinquent on mortgages that are at least 12 months old
and meet other eligibility criteria.
Eligible borrowers are not required
to submit documentation for a Streamlined Modification.
becomes permanent after the borrower demonstrates their ability to pay making
on-time payments during the three month trial period.
Modification offers the same mortgage terms as Freddie Mac's Standard
Modification which enables servicers to reduce monthly mortgage payments by
adjusting interest rates, extending payment terms to 40 years, and, in certain
cases, provide principal forbearance.
Since 2009, Freddie Mac has helped
more than 830,000 distressed borrowers avoid foreclosure and more than 6.7
million families refinance into more affordable mortgages through Freddie Mac's
refinance options including the Relief Refinance Mortgage(SM) and the Home
Affordable Refinance Program (HARP).
For more information, visit www.FreddieMac.com.