Quite a few Fannie Mae loan mortgage programs are currently being offered to help homeowners overcome problems meeting mortgage installments; avoid foreclosure; or help buyers’ purchase affordable housing.
Recently implemented Fannie Mae loan mortgage programs include Hardest Hit Fund, Deed-for-Lease, and housing counseling services offered through Fannie Mae Help Centers.
Presently, Hardest Hit Fund is available in 19 states. This program is aimed toward helping homeowners facing foreclosure due to underemployment or unemployment. The eligibility criterion varies by state, so homeowners will need to review their states’ Hardest Hit Fund website to review requirements and download application forms.
Hardest Hit Fund programs haven’t received much publicity. Therefore, not many people are aware of available funds they might qualify for. Many programs still have considerable funding available. For example, Florida Hardest Hit Fund received over $400 million in government funds, but has only provided under $1 million in assistance money.
One discouraging fact of the Hardest Hit program is nearly half of applicants are denied help. Homeowners in need of mortgage assistance should seek counseling via Fannie Mae help centers or HUD housing counseling. These counselors can help homeowners fill out application forms, as well as offer advice about other programs they may qualify for.
There are only a few physical locations for Fannie Mae Help Centers that provide face-to-face counseling services. However, homeowners can obtain counseling via phone by contacting the agency nearest their home. A complete list of help centers is published a KnowYourOptions.com; a Fannie Mae website developed to assist homeowners with understanding available foreclosure prevention options.
An additional foreclosure prevention program that provides help to homeowners whose loans are owned by Fannie Mae is Making Home Affordable. This is a government-sponsored program created by the Obama Administration in 2009.
Making Home Affordable offers a variety of programs including: loan modification; mortgage refinance for first and second liens; principal reduction; deferred payments; mortgage forbearance; and foreclosure alternatives of real estate short sales and deed in lieu of foreclosure.
The recently implemented, Fannie Mae Deed-for-Lease program is offered to homeowners that can no longer afford to pay loan installments, but don’t want to move out of their house.
Qualified applicants can assign the property deed to the bank using deed in lieu of foreclosure. Under normal circumstances, homeowners immediately vacate the property after signing the deed over to the bank.
Under Deed-for-Lease, homeowners can lease their house back from the bank. Rental rates are based on the property’s current market value and are usually much lower than mortgage installments.
Individuals and real estate investors looking for discounted residential properties should consider Fannie Mae Homepath. This program was instituted to liquidate excess inventory of real estate owned (REO) homes.
Fannie Mae Homepath properties are residential homes that were returned to the bank via deed in lieu or repossessed via foreclosure. In addition to selling houses below market value, buyers can apply for financing through Homepath Mortgage to receive reduced interest rates and down payment requirements.
While many Americans are not pleased with past practices of Fannie Mae, chances are this government-sponsored enterprise will be around for a long to come. Whether you love them or hate them, you might as well take advantage of Fannie Mae loan mortgage programs to save your home from foreclosure or put extra cash in your pocket when buying a house.