Homeowners in Florida may be able to benefit from a new Fannie Mae foreclosure prevention program which is hoped to bring more homeowners and mortgage servicers together in a timelier manner so that a modification or foreclosure prevention alternative plan may be worked out to the benefit of homeowners in need. This new Fannie Mae foreclosure prevention program is currently being tested in Florida due to the fact that this state has been one of the hardest hit areas still hurting from the recession and seeing homeowners in need of mortgage assistance.
This particular effort by Fannie Mae is hoped to speed up mandatory negotiations which must take place between a servicer and a homeowner in the hopes of finding a foreclosure prevention program, like a modification, which can help homeowners either find the affordability they need to continue making their mortgage payment or perhaps qualify for programs like a short sale or deed in lieu of foreclosure plan.
One of the main reasons that this program is being tested is because of homeowners who are in a period of default for a longer amount of time typically have to meet higher costs or are simply finding themselves in a worse financial position due to various financial strains which may have been avoided had a modification agreement been reached earlier. Overall, modifications from the federal Making Home Affordable Program and various other modification initiatives directly from servicers have come under criticism as many homeowners feel that servicers and modifications in general have been unhelpful when it comes to preventing foreclosure.
However, homeowners who have benefited from these programs have usually seen a drastic drop in the amount they must pay on their mortgage, which obviously is beneficial to those who are in a financial position where a traditional mortgage payment is not possible. Essentially, home loan modifications and other foreclosure prevention efforts do have the ability to help homeowners avoid foreclosure, but the implementation of these programs in a timeframe that is beneficial to homeowners is something that has been an issue for months.
There are homeowners who feel that they were unjustly denied a trial modification or had their trial modification canceled for seemingly no reason at all, plus there are many homeowners who have been unable to escape from a trial modification as reports indicate servicers have held some homeowners in a trial period for far too long. However, some homeowners have simply either improperly filed applications for a modification or have not met qualifications, and as a result have not benefited from these programs.
Yet, it’s believed by many that when a homeowner is in need of home loan assistance through a foreclosure prevention program, the quicker that action is taken the higher the likelihood that a solution will be reached which will be beneficial for both homeowner and services. Obviously, there are still homeowners who may default on their home loan modification payment due to financial troubles, but it’s hoped that this foreclosure prevention programs from Fannie Mae will show that in cases where modification plans are offered sooner rather than later, homeowners could see a higher rate of success.