In an effort to provide mortgage servicers more time to implement that Streamlined Modification Program (SMP), Fannie Mae will extend the suspension of foreclosure sales and evictions until Jan. 31. This initiative applies to loans owned or securitized by Fannie Mae.
During the extension, Fannie Mae hopes that attorneys and loan servicers contact borrowers and pursue workout options.
Last November, Fannie Mae announced the SMP and initiated this program on December 15th. The SMP will target distressed homeowners who have missed three payments or more, who own and occupy their primary residence, and who have not filed for bankruptcy. The goal of the program is to keep owners in their houses through a combination of reducing the mortgage, interest rate, extending the life of the loan, and possibly even deferring payment on part of the principal –– all with the intention of providing the distressed homeowner with a lower monthly payment.
Also, don't forget to check out my most recent HubPages article talking about Fannie Mae and Short Sales by clicking here!
Have a great weekend!
- Josh Cantwell