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Mortgages

If You’re A Homeowner Then You May Be Eligible For The Principal Reduction Program…Why Pay Extra For Your Mortgage?

If You’re A Homeowner Then You May Be Eligible For The Principal Reduction Program…Why Pay Extra For Your Mortgage?

If You’re A Homeowner Then You May Be Eligible For The Principal Reduction Program…Why Pay Extra For Your Mortgage?

According to the reports of the Federal Housing Finance Agency (FHFA), 1400 South Floridians or more could be qualified for a one-time reduction of their unpaid mortgage principal that would lower their monthly payments and avoid the risk of foreclosure (forced sale of the borrower’s property by the lender)

The lender offers are expected to arrive in the struggling borrower’s mailboxes this month but can be extended till Dec.31.

For further confirmation, “The borrowers can visit the website www.FHFA.gov/PRM, to confirm that a reduction in their mortgage payment is lawful. The website further provides information regarding spam reporting,” the agency further added in the statement.

To qualify for the offer, the owner’s mortgage must be backed by The Federal National Mortgage Association (FNMA) also called  Freddie Mac or Fannie Mae and he or she must be residing in the home, minimum 90 days as of March 1, also have an unpaid maximum mortgage amount of $ 250,000 as of March 1; owing 115% or more than the worth of the home.

The FHFA says, 30,761 homeowners (Nationwide) are eligible  for the reduction of mortgage principal whereas, 6,260 homeowners (Statewide) could qualify.

In April, the FHFA agency announced the program to help and considered it as a last chance for struggling borrowers to come out of the crisis (foreclosure) and at the same time aim to “preserve and conserve” Freddie Mac assets.

Bethesda, Md- According to the Inside Mortgage Finance newsletter publisher, Guy Cecala, the final course of action which is beneficial for the borrowers is to reduce their principal mortgage amount. The program would save many people nationwide because most of them owed the amount more than the worth of their homes.

Cecala presented the concern, “There might be a probability that many of the homeowners intentionally defaults themselves to qualify for the mortgage reduction program and lenders might fail to reward borrowers who’re genuinely in need of the offer.”

Cecala further added, now that the mortgage crisis comes to an end, reducing the principal amount for some of the homeowners would not cause the U.S government big dollar losses.

According to FHFA, before accepting the offer the homeowners have to sign an acceptance letter and to make 3 on-time payments.

Those who think that they qualify for the program, but have not received a mail, they can contact their lenders directly to share their concern.

FHFA further said, those homeowners who haven’t qualified for the principal reduction, might become eligible for another program.

It is advisable to inform your lender about your difficulty before it gets too late, the agency added.

Posted in Mortgages