For many retired seniors, home ownership and financial security used to be regarded as one and the same. These days, not only are home foreclosure rates at an all-time high, but marketable home values continue to decline.

Making-Home-Affordable
or MHA is a new federal program striving to get both the economy and housing market back-on-track. It offers two solutions for certain mortgage borrowers who have become delinquent. Those who’ve contracted with Fannie Mae or Freddie Mac, the primary federal lenders, may be able to refinance or modify their current mortgage loans.

In promoting MHA, California’s Foreclosure Prevention Act or CFPA provides even more options and protections.  It defines an affordable mortgage as one with monthly payments that do not exceed the borrower’s income by more than 38 percent. CFPA demands that no lender proceed to foreclosure without offering delinquent borrowers a more reasonable mortgage plan.

According to the CFPA, lenders of mortgage contracts obtained through Fannie Mae or Freddie Mac between January 1, 2003 and January 1, 2008, must provide their borrowers with 90 days to explore newly mandated financial alternatives.

To qualify for this time-stopping protection:

  • The loan in default must be the borrower’s primary mortgage or deed of trust.
  • The property must be the borrower’s principal residence.
  • The borrower may not have already surrendered the home to any mortgage loan services.
  • The borrower may not yet have filed for bankruptcy.

Possible loan modifications approved by CFPA include :

  • An interest rate reduction, as needed, for a fixed term of at least five years.
  • An extension of amortization period for a loan term of up to 40 years from the original loan date.
  • Deferral of some portion of the unpaid principal balance until the loan matures.
  • Reduction of principal.

If a lender provides evidence that it has a similar comprehensive loan modification plan, designed to keep borrowers in their homes, the CFPA may provide a waiver of the otherwise mandated 90-day foreclosure delay.
 
Financial schemers seem to be targeting senior homeowners more than ever before. The MHA has warned potential victims how to recognize recent foreclosure scams:

  • Help is free. When getting assistance or information from your lender or a HUD-approved housing counselor, there will never be a fee.
  • When attempting to refinance your loan, do not sign over your property deed to any organization or individual unless you are working directly with your particular mortgage company.
  • Without the approval of your mortgage company, never submit your mortgage payments to anyone else.

To determine if your mortgage loan is eligible for current MHA relief, contact Fannie Mae at: 800-7FANNIE or fanniemae.com/loanlookup and Freddie Mac at: 800-FREDDIE or freddiemac.com/mymortgage.

For many retired seniors, home ownership and financial security used to be regarded as one and the same. These days, not only are home foreclosure rates at an all-time high, but marketable home values continue to decline.

Making-Home-Affordable
or MHA is a new federal program striving to get both the economy and housing market back-on-track. It offers two solutions for certain mortgage borrowers who have become delinquent. Those who’ve contracted with Fannie Mae or Freddie Mac, the primary federal lenders, may be able to refinance or modify their current mortgage loans.

In promoting MHA, California’s Foreclosure Prevention Act or CFPA provides even more options and protections.  It defines an affordable mortgage as one with monthly payments that do not exceed the borrower’s income by more than 38 percent. CFPA demands that no lender proceed to foreclosure without offering delinquent borrowers a more reasonable mortgage plan.

According to the CFPA, lenders of mortgage contracts obtained through Fannie Mae or Freddie Mac between January 1, 2003 and January 1, 2008, must provide their borrowers with 90 days to explore newly mandated financial alternatives.

To qualify for this time-stopping protection:

  • The loan in default must be the borrower’s primary mortgage or deed of trust.
  • The property must be the borrower’s principal residence.
  • The borrower may not have already surrendered the home to any mortgage loan services.
  • The borrower may not yet have filed for bankruptcy.

Possible loan modifications approved by CFPA include :

  • An interest rate reduction, as needed, for a fixed term of at least five years.
  • An extension of amortization period for a loan term of up to 40 years from the original loan date.
  • Deferral of some portion of the unpaid principal balance until the loan matures.
  • Reduction of principal.

If a lender provides evidence that it has a similar comprehensive loan modification plan, designed to keep borrowers in their homes, the CFPA may provide a waiver of the otherwise mandated 90-day foreclosure delay.
 
Financial schemers seem to be targeting senior homeowners more than ever before. The MHA has warned potential victims how to recognize recent foreclosure scams:

  • Help is free. When getting assistance or information from your lender or a HUD-approved housing counselor, there will never be a fee.
  • When attempting to refinance your loan, do not sign over your property deed to any organization or individual unless you are working directly with your particular mortgage company.
  • Without the approval of your mortgage company, never submit your mortgage payments to anyone else.

To determine if your mortgage loan is eligible for current MHA relief, contact Fannie Mae at: 800-7FANNIE or fanniemae.com/loanlookup and Freddie Mac at: 800-FREDDIE or freddiemac.com/mymortgage.