Domestic Financial Management

Domestic Financial Management LLC
"Foreclosure Is Not An Option."

Mortgage Loan Modification

Mortgage loan modifications are intended to reduce your mortgage obligation during a time of financial difficulty. This is a permanent change to your mortgage to provide a more affordable payment.

A mortgage lender may agree to reduce the interest rate and/or reduce your monthly payment and possibly spread the past-due amount out over time. It’s intended to make it easier for the borrower to keep up with their loan payments and avoid foreclosure.

The Home Affordable Refinance Program (HARP) began on April 1, 2009 and expired on December 31, 2018. Several loan services still offer Loan Modifications that might fit your financial needs.

When you have little equity in your home, or owe as much or more money on your mortgage than your home is worth, it can be difficult to find a lender willing to help you refinance. But for borrowers who have remained current on their mortgages, and have loans owned by Fannie Mae or Freddie Mac, there is hope.

The Fannie Mae Flex Modification Program

This Flex Modification replaces the Home Affordable Modification Program (HAMP), it is designed to offer payment relief to struggling homeowners.

The Flex Modification program replaces the Home Affordable Modification Program (HAMP). The Flex modification program may be able to:

  • Bring your home loan up to current to avoid foreclosure.
  • Lower your interest rate and reduce your mortgage payment.
  • Extend your loan duration to Lower your mortgage payment.
  • Temporarily pay your mortgage at a lower payment or pause paying your mortgage.
  • Incorporate past due payments and recalculate your loan so you won’t have to pay past due payments.

The Freddie Mac Flex Modification Program

The Freddie Mac Flex Modification program is much the same as the Fannie Mae program. Like Fannie Mae’s program if you qualify for the Flex program you could reduce your monthly payments by as much as twenty percent.

Do I Qualify For Loan Modification?

The first step in understanding if you qualify. If your Mortgage loan is owned by Fannie Mae or Freddie Mac then you have a loan insured by the Federal Housing Administration.

If you’re currently experiencing financial hardship and you live in the home for a majority of the year, you may qualify.

It is important to show affordability, hardship and income. Under the government’s program, your Debt to Income Ratio (DIT) is the most important factor in getting a loan modification.

If you had a loan modification in the past twelve months or your current Interest rate is 2.50% or less, you may not be eligible. It comes down to “affordability”, you simply may not be able to afford a mortgage. This is a sad fact, but true.

To better assist you on this topic, please call or email us with any of your questions.