Many homeowners looking to refinance or modify their mortgage are frustrated by unwillingness of some lenders to cooperate. It needs to be remembered here that Making Home Affordable Refinance Program applies ONLY to Fannie Mae and Freddie Mac sponsored loans. In addition, those loans must meet criteria for refinancing or modification.
Here are the recommended steps to take when it becomes obvious that loan servicer is not following the guidelines for the Obama Administration’s Making Home Affordable Program for modifying eligible mortgages and refinancing Fannie Mae and Freddie Mac mortgages:
- First, go to http://www.makinghomeaffordable.gov/ — the official Treasury website for the Making Home Affordable Program. At the site, determine whether the loan is owned or guaranteed by Fannie Mae or Freddie Mac by clicking “Loan Look Up” on the ribbon on the top of the home page. Only the holder of the loan is allowed to perform this search or a person who has a written permission from the borrower.
- If the loan is a Fannie Mae or Freddie Mac loan, borrower should call 1-800-7Fannie or 1-800-Freddie, as appropriate, describing the specific inconsistency. This applies to both, the refinancing and the loan modification program.
- Next, if the loan is not owned or guaranteed by Fannie Mae or Freddie Mac, borrower can determine if the loan servicer is participating in the Home Affordable Modification Program (HAMP) by going to the website and clicking “Contact Your Mortgage Servicer” on the top ribbon. To date, 16 servicers are participating, covering more than 80% of all mortgages.
- If the servicer is participating, the first step is to contact the servicer using the phone number or email address listed on the site so the borrower can appeal the issue to a supervisor. The borrower should identify the specific provision of the guidance that is believed not being followed. If the supervisor cannot or will not correct the problem, the borrower can call 1-800-7Fannie to report the disagreement. Fannie is administering the program for the Treasury Department and will work to resolve the issue.
Making Home Affordable Program Website (consumer friendly)
To see if you are eligible for Re-Financing
To see if you are eligible for Modification
Related post on this blog, March 2009, about Loan Refinancing and Modifications
SOURCE: NAR, REALTOR Magazine
