Home Loan Forbearance Plans From Fannie Mae And Freddie Mac–Are Homeowners Receiving Payment Forbearance?

Home loan forbearance plans have been implemented to assist homeowners through home loan forbearance plans, like those from Fannie Mae and Freddie Mac, but there is concern whether these programs are beneficial or if homeowners are even receiving mortgage payment forbearance opportunities in order to prevent the loss of their home. Recently, the Federal Housing Finance Agency released data on various foreclosure prevention and refinancing opportunities, and for Fannie Mae and Freddie Mac there were some successes in certain areas, but decreases in others.

Concerning home loan forbearance opportunities, it was reported that in the second quarter of 2010 Fannie Mae and Freddie Mac had implemented around 20,585 forbearance plans, but that number dropped to 13,863 in the third quarter. Obviously, homeowners who are unemployed mostly benefit from these forbearance options as they are allowed to forgo making home loan payments for a set period of time, ideally while they find an employment opportunity that allows them to resume making payments.

The Home Affordable Unemployment Program was implemented as a way to assist these unemployed homeowners who, according to new rules, could not claim unemployment benefits as income, thus disqualifying them from the home loan modification program. Homeowners who do not have a stable source of income are typically not allowed to qualify for a Making Home Affordable Program modification, but under the Unemployment Program, these homeowners could qualify for a lower mortgage payment or a forbearance plan on their home loan.

Yet, there was a positive report that the Home Affordable Refinance Program did see an increase in the number of refinancing options for homeowners from the second quarter to the third quarter in 2010, there are still many who feel that homeowner troubles will continually need to be addressed in the beginning of 2011 as there are still problems related to an underwater home loan and, particularly, long-term unemployed who are facing foreclosure.

While there are issues that remain with a variety of mortgage servicers, advisers still suggest that homeowners who may be without a job and in need of mortgage assistance speak with their servicer about a forbearance plan or another foreclosure prevention option, as each homeowner’s situation may offer particular options for avoiding the loss of their home. Understandably, programs like home loan forbearance plans may only offer a temporary solution, and could lead to a homeowner facing inevitable foreclosure down the road, forbearance still may give homeowners time to either find an employment opportunity which could qualify them for a modification program or they may be able to work out an agreement with their servicer which will allow them to participate in a foreclosure alternatives plan.