Question
Does the Making Home Affordable Program only pertain to Freddie Mac and Fannie Mae Loans?
A friend of mine, who has a Fannie Mae, got her principle and interest loan down from $2200.00 to $1200. They modified it to a 2% interest for the first five years, and then a 1% increase each year after that and it will cap at 6% for the remainder of the term. Although her term has been changed from 30 year to 40 which at this point she is fine with. They were also very nice about the whole thing which leads me to believe that maybe it was because the loan is a government Fannie Mae. My experience has not been all that pleasant.
2 months ago - 2 answers
Best Answer
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No. The problem has been that the program is voluntary. And the program almost always causes the lender to lose money. More than $20,000 in most cases. The government reimburses the lender $1,000. That is not a good deal for most banks. Some banks are making up part of the loss by adding $9,000 in "fees" to the new loan. Ask your friend if you can see the settlement sheet on her refinance. Total up the numbers under the "Loan Fees" category. You will discover if she got a great deal or not.
by Ed Atun
2 months ago
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Other Answers
Your friend got a great deal. Most people do not fare so well. Many get no help at all from the HAMP. The Big Banks are behind the program, which was crafted by the Treasury Department. Despite the propaganda about "keeping Americans in their homes", the Banks will help WHO they want, IF and WHEN they choose to. I suggest checking out these websites to either do-it-yourself or look into getting assistance from a credible third-party (always insist that pre-approval is free).
by Bob F- 2 months ago