Friday, November 21, 2008
Fannie Mae and Freddie Mac are halting foreclosures and evictions from Nov. 26 to Jan. 9 in order for borrowers to sign up for a new program to modify troubled home loans to make them more affordable. The program's parameters are:
· In order to qualify, the loan must be 90 days delinquent or the home must already be in foreclosure.
· The monthly payment on the new mortgage will not be more than 38 percent of the monthly pretax salary of the borrower(s).
· The new term on the loan can be up to 40 years, the interest rate on the loan can be reduced, and the principal due on the loan can be reduced for a temporary period, but must be paid back in full eventually.