Don’t Lose Your Home! Fannie Mae & Freddie Mac Introduce Flex Loan Modification Program

The Home Affordable Modification Program (HAMP) has helped thousands of people who were having trouble making their mortgage payments avoid foreclosure, and get back on track. This program, however, has recently come to a conclusion, leaving many people at risk of foreclosure, even if they just needed a little help getting back on track.

As of March 1st, 2017, however, a new program has been rolled out by both Fannie Mae and Freddie Mac. The program, called Flex Loan Modification, has many similarities to the HAMP program, and is an excellent option for those who are falling behind on their monthly payments, but want to remain in their house.

Who Qualifies

This Flex Modification program is available for anyone who has a loan owned by either Fannie Mae or Freddie Mac. Remember, even loans managed by many banks (Chase, Wells Fargo, and many others) are actually owned by one of the two major government backed agencies. In fact, approximately ¾ of all US mortgages are owned by either Fannie or Freddie. You can determine which company truly owns your mortgage either by calling your mortgage servicer, or clicking HERE for Fannie Mae and HERE for Freddie Mac.

To qualify, the mortgage loan must also be a conventional first lien mortgage loan, and on either a principal residence, second home, or investment property. The loan must be at least 60 days delinquent, or at risk of imminent default. There are a variety of other detailed requirements, which an attorney can determine whether or not you qualify for.

How Does This Program Help?

Just like the HARP program, the Flex program is designed to help people avoid bankruptcy and keep their home. This is typically done by reducing the monthly payments on the mortgage, which can be accomplished in a number of ways, including the following:

  • Cutting Interest Rates – Reducing the interest rate on the mortgage is one of the main ways to cut payments.
  • Extending the Mortgage – Another option is to extend the length of the mortgage to as much as 480 months, which is 40 years. This allows the borrower to pay lower monthly payments over a longer period of time.
  • Forebear Principal – The last option is to take some of the principal amount owed, and put it into what is called forbearance. This portion of the principal does not accrue any interest, and does not require any payments to be made until either the property is sold, or the remainder of the mortgage has been repaid.

Once done, most people will have their mortgage payments cut by up to 20% per month, and kept below 40% of their total monthly income. They will also have a fixed interest rate, which is beneficial for maintaining a predictable payment each month.

Take Action Today

If you are behind on your mortgage payments, or you fear you will be soon due to job loss or other circumstances, now is the time to take action. This blog post explains the basics of the program, but there are many details that may apply depending on your situation. Contact The Law Office of Ray Garcia, P.A. [Link to CONTACT US page] to discuss your situation, and see if you are able to qualify for the Flex Loan Modification Program.

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Law Office of Ray Garcia, P.A.

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