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Fannie Mae and Freddie Mac could save $1.7 billion if they forgave principal on some troubled mortgages. Furthermore, The Federal Housing Finance Agency may make a decision in the next few weeks; whether to change its policy barring the two taxpayer-owned companies from performing such loan modifications. In fact, The FHFA has come under pressure from the Obama administration and consumer advocates to cut principal for underwater borrowers. Moreover, the companies are barred from reducing principal on the seriously delinquent loans they own or guarantee on the grounds that it would hurt their bottom line.
Furthermore, the FHFA will announce additional measures to help troubled homeowners in the next few weeks. Other measures may include a program that would allow delinquent Fannie Mae and Freddie Mac borrowers to continue to live in their houses as renters. That is after turning over the deeds.
Additionally, the FHFA said it would cost Fannie Mae and Freddie Mac an additional $100 billion. Just to write down all 3 million underwater loans to the value of the homes securing them. However, far fewer loans would actually be candidates for principal forgiveness, even if FHFA changes its policy. It is estimated that at best the tactic would help an additional 200,000 to 300,000 families keep their homes. From the perspective of the FHFA, the main goal is to protect taxpayers. They want to be sure the principal reduction strategy is appropriate. And, they believe it is for some types of loans.
If you have questions about foreclosure, loan modification, bankruptcy, or other alternatives, please feel free to call my office at 954-484-9987, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.
Emil Fleysher is a South Florida attorney dedicated to helping individuals overcome financial hardships. As the founder of the Law Office of Emil Fleysher, P.A., he specializes in bankruptcy, debt settlement, foreclosure defense, and mortgage solutions.
A graduate of Nova Southeastern University Shepard Broad Law School (2009, honors), Emil has a strong commitment to consumer rights and has volunteered over 300 hours with Legal Aid of Broward County. His firm takes a personalized, client-focused approach to debt relief, ensuring individuals understand their options and regain financial stability.
For those facing overwhelming debt or foreclosure, Emil offers free consultations to explore the best solutions.
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