The Real Deal Miami

Delinquent mortgage borrowers get another chance

Fannie Mae and Freddie Mac eliminate eligibility cap
October 20, 2014 02:15PM

underfeechNow being two or more years late on mortgage payments no longer means delinquent Florida borrowers have run out of options to save their homes.

The Federal Housing Finance Agency eliminated an eligibility cap that banned loan modifications to borrowers who were more than 720 days delinquent. Lenders are being urged to comply with the change in the loan modification rules immediately, and borrowers who were previously denied a modification must be reevaluated.

Several lawyers told the Palm Beach Post that their clients are receiving approval under the program, which offers a streamlined route to a loan modification, with less paperwork and faster turnaround. [Palm Beach Post] — Jennifer Karp