February 10, 2009

Ask the Expert





Q I lost my job and got behind on my mortgage payments. Now I have a new job and can pay my bills. But I don't see any way I'll be able to catch up with my mortgage payments. Can I avoid losing my home?
A You're in luck! Fannie Mae, the nation's big mortgage financing company, recently announced a new kind of loan called the HomeSaver Advance.
This loan is designed for people who have fallen behind on mortgage payments because of divorce, job loss, or illness. While your local lender will usually give its good customers time to catch up with payments, their limit is typically two years. After that time, you must be in good standing.
With the HomeSaver Advance program, you can get a 15-year loan at 5 percent interest that covers delinquent payments. You won't be required to make a payment on the loan for six months.
You won't get the money directly. Your loan servicer, the company that provides billing and payment services for your lender, will get the money.
To qualify, a borrower must have a loan that is at least six months old that was sold to Fannie Mae by the original lender. This is the case with about 23 percent of mortgages nationwide.
You must also be behind in payments in an amount equal or greater than two full payments of the mortgage principal, interest, taxes and insurance.
You must show your situation has resolved itself and that you will be able to carry another loan.

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