Wednesday, March 5, 2008

We Need a Little Financial Help to Keep Our House … What can we do?

A new Fannie Mae program being rolled out now just may be your answer. Recognizing that many people are in peril of losing their homes because of a temporary life event or hardship, Fannie Mae is implementing its HomeSaver Advance loan program. The setback situation is often remedied, but the borrower that slipped behind in payments is now faced with the prospect of foreclosure when in fact, if they could just get even they would be able to sustain the payments. HomeSaver Advance is designed to assist in such a circumstance.

HomeSaver Advance, an unsecured personal loan, is a new loss mitigation alternative available to approved Fannie Mae servicers for eligible borrowers designed to bring a delinquent loan current. It provides funds to cure arrearages of principal, interest, taxes, and insurance (PITI), as well as other advances and fees. HomeSaver Advance is documented by a borrower-signed promissory note, payable over 15 years at a fixed rate of 5% with no payments or interest accrual for the first six months. HomeSaver Advance is designed for qualified borrowers who have fallen behind on their mortgage, but are able to resume timely payments once their loan is brought current by the advance. It helps simplify and streamline the workout process for applicable loans, as it provides an option for earlier resolution of delinquent loans.

HomeSaver Advance Highlights: Loan amount up to the lesser of $15,000 or 15% of the original unpaid principal balance for delinquent PITI (principal, interest, taxes, insurance), escrow advances, and advances for attorney fees and costs and up to 6 months of unpaid HOA fees (12 months, where the HOA fee is paid once per year). The full loan amount is applied directly to arrearage (borrower never receives funds in hand). Note rate at a fixed rate of 5% with 6-month no-interest/no-payment period. Amortization period of 14.5 years after the conclusion of the 6-month no-interest/no-payment period. Workout fee paid to servicer is $600. HomeSaver Advance will be available to all Fannie Mae-approved servicers in April 2008.

Our Advice: This loan can offer you another alternative, and help prevent a temporary setback from becoming a foreclosure. HomeSaver Advance offers an unsecured, personal loan that will enable you to cure the payment default with fewer up-front costs and generally in less time. In trouble? Don’t play ostrich – take action and save your home. Whether you save it until the market recovers to enjoy appreciation equity, or if you choose to remain in it, here is an opportunity to avoid the excessive emotion and consequences of a foreclosure.

This is but one remedy to come forth in these interesting times. If this doesn’t work for your situation something else might. Keep positive and good things will happen.
Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, , email us at 775-781-5472.

1 comment:

Anonymous said...

Interesting, thanks for bringing this to light. It will be fun to see if this is an effective fix.