Thursday, February 25, 2010

Another Mortgage Modification Proposal

The Mortgage Bankers Association (MBA) announced today a proposal for a new voluntary forbearance program that would allow qualified borrowers who have lost their jobs to remain in their homes while they seek new employment.

According to the proposal, loan servicers would reduce the borrower's mortgage payment to an affordable amount for up to nine months while the homeowner seeks employment. "The program is designed to allow borrowers time to find a new job, after which they could hopefully qualify for a loan modification." The borrower would be reevaluated as to employment and income status every three months for a total forbearance of nine months. Once reemployed, the borrower would be evaluated for a modification under the federal government's Home Affordable Modification Program (HAMP).

No comments: