Freddie Mac, one of the federal housing market giants, has announced that it will make it possible for homeowners without work to increase the period of time during which their mortgage payments can be lowered or suspended. Freddie has made this kind of move in the past, but it was for a period of 3 months. The amended offer increases this period to 6 months. In addition, the possibility of a one-year extension exists as well. This effectively doubles the previous extension which went no further than 6 months.
Another development involves the fact that companies that service Freddie Mac’s home loans now have the right to halt the loan payments from unemployed homeowners without Freddie Mac’s approval. Approval was required previously, which made the process more complicated and caused delays.
Those who have dealt with or are dealing with the painful reality of unemployment know all too well that it often takes far longer than 3 months to get back on your feet again. This is especially true in financial and economic conditions like those that are currently prevalent in the United States. An extension of this nature takes this fact into consideration, and it is a move which will provide at least a little bit of relief to as much as 10% of Freddie’s mortgage holders. It’s a course of action that seems to be having somewhat of a ripple effect, with Fannie Mae, another large government real estate player, announcing that it will be adopting a similar strategy in the near future.
America currently faces an unemployment rate of 8.5%, and there’s little doubt that most of these millions of people are homeowners who are finding it incredibly difficult to keep up with their existing mortgage obligations. Those homeowners who have obtained a mortgage via Freddie Mac now have the option of contacting the mortgage giant in order to take advantage of this extended period of relief. This may not represent a long-term solution for many people, but there are certainly those who simply need a bit more time to secure stable employment in order to get their lives back on track.
Undoubtedly, a reprieve of this nature will come as very good news to a great deal of struggling homeowners. It is however true that this move amounts to little more than a band-aid on a festering wound. What struggling homeowners really need, beyond a few months break from their existing mortgage obligations, is to have their mortgage terms significantly altered so that it results in a more affordable arrangement over the long-term that makes life easier to cope with. What millions of struggling homeowners really need is a loan modification that provides them with sustained financial relief.
Obtaining a loan modification need not feel like a pointless search for the mythical unicorn. For the homeowner who is intent on saving their home from foreclosure, expert help and support is at hand, help that is both affordable and comprehensive. To find out how you can go about preparing and submitting an empowered loan modification application, visit Mycaal.com today.
About Carla Ghosn
|CEO and Founder of Caal (mycaal.com) keen on helping American homeowners save their home. If you need help with your loan modification, visit www.mycaal.com to get help on pre-qualifying your loan for approval, as well as preparing and printing your loan modification package online.|