Homeowners with Freddie Mac recently received potentially positive news in the form of new modification options available from the Freddie Mac Standard Modification plan, which is hoped to help offer more opportunities for affordability and instances where homeowners are slipping behind on their payments or may be in a position where they have defaulted on their mortgage or currently run the risk of facing foreclosure. Some aspects of this program mirror federal home loan modification initiatives from HAMP but it’s hoped that homeowners who may have been unsuccessful at getting aid from the Making Home Affordable Program will be able to take advantage of this plan in the coming months.
Homeowners will reportedly have to meet certain qualifications, which is nothing new to the modification efforts made on the part of a variety of mortgage servicers, but it should be understood that homeowners pursuing this particular Standard Modification program will have to be in a position where they are determined to be in danger of defaulting or behind on their mortgage payments, homeowners will have to submit certain types of documentation, specifically paperwork that will show they have faced hardships and some homeowners who may have been unsuccessful at taking advantage of a HAMP plan may have this program to fall back on as well.
Obviously, homeowners with Freddie Mac will be made more aware of these standards as they begin the process but it’s hoped that servicers will be able to help homeowners starting on October 1, but this timeframe may differ depending on a homeowner’s situation and the application process for a particular individual’s financial needs.
While homeowners need to remember that this program, like the Making Home Affordable modification initiative, is simply one route that homeowners may be able to take to avoid financial setbacks related to a variety of problems that may cause them to fall behind on their mortgage, it is by no means a guarantee when it comes to foreclosure prevention. Homeowners must also be aware of alternative programs that may be available from their state or directly from their servicer, but there are instances where homeowners simply are in a position where they either cannot qualify for or benefit from certain foreclosure prevention programs.
Homeowners have defaulted even after being offered a modification payment period, which goes to show that some men and women are still suffering from setbacks that may be the result of the loss of their jobs or a reduction in their income, yet it’s hoped that for Freddie Mac homeowners this Standard Modification program will offer another alternative which could potentially be helpful if a homeowner is unsuccessful at other foreclosure prevention programs from plans like HAMP or their servicer.