It is a known fact that many people are having a difficult time paying their mortgages. These are very challenging times in a very volatile real estate market. A delinquency may be the result of an adjustable rate mortgage or due to a loss of employment. Regardless of what the reason is, there are some avenues of hope that should be researched before taking the plunge to foreclosure.
A little known resource is the Home Saver Advance initiated by Fannie Mae since June, 2008. This program is not highly publicized and, therefore, many people are unaware that it is available. Little, if any, information has been given in the news about this program. Being someone who watches the mortgage market on a daily basis, it was quite a shock for me that this came out six months ago and yet, this week was the first time I came across this information.
In short, it is an unsecured personal loan from Fannie Mae for eligible borrowers to cure a first mortgage delinquency. The borrower signs a promissory note payable over 15 years at an interest rate of 5%. In addition, this loan has no payments or interest accrual for the first 6 months. The amount of these loans are up to $15,000 depending on the circumstances.
This is actually a great little program that very few people are aware of. It can really help some people avoid a potential foreclosure. It can also be used to pay back homeowner association fees. Many people do not realize that you can be up to date on your mortgage but if you are behind on homeowner association fees, the association can, in fact, start foreclosure proceedings against you. For someone that has lost their job, this is a wonderful alternative to help them until they have regained employment.
For anyone who wants more information, visit the website:
call Fannie Mae Servicing Solutions Center at 1-888-FANNIE8 (1-888-326-6438), option #2.
Please go ahead and pass this information on to someone who may need it. In these troubled times, it is really important to spread the word around about help that is out there but so few know about.