NEW Fannie Payment Reduction Plan 11/1/09

davephx · 10-21-2009, 10:30 PM

NEW Fannie Payment Reduction Plan 11/1/09

If someone does not qualify for HAMP, as of 11/1/09 the new "Payment Reduction Plan" replaces the previous HomeSaver Forbearance Plan.

Up to six month reduction of pi (not ti) of up to 30% to have time to work out other options. But, this is not as good as the prior plan where could reduce up to 50% of piti.

Includes investment properties and 2nd homes.

OK I am not good at English. What does "no less than six months" mean. I think it means has to be more than six months right? Makes no sense if only those within six months.

The mortgage loan is a first lien conventional mortgage loan originated no less than six months prior to the PRP effective date, as reported by the servicer and upon receipt of first payment.

Details at https://www.efanniemae.com/sf/guides.../2009/0930.pdf

darkdays · 10-21-2009, 11:25 PM

Up to 6 months = 6 months or less.

davephx · 10-21-2009, 11:27 PM

So it only works if the 1st was just originated within six months????

That would make no sense.

Sadly I have a CPA background not English

flagirl4444 · 10-22-2009, 09:00 AM

Quote:

Originally Posted by davephx

The mortgage loan is a first lien conventional mortgage loan originated no less than six months prior to the PRP effective date, as reported by the servicer and upon receipt of first payment.

No less than 6 months means it has to be more than 6 months. In other words, only loans that were originated before May 1.

davephx · 10-22-2009, 09:22 AM

Quote:

Originally Posted by flagirl4444

No less than 6 months means it has to be more than 6 months. In other words, only loans that were originated before May 1.

That of course makes more sense.

litehouse01 · 10-25-2009, 05:07 PM

Will this be a given if denied after going thru the trial payments? To give a person some time to come up with money to save their home? I'm not denied yet but always looking for a backup plan ....And is it possible they may have something in house to offer? Making 4th trial payment nov1

darkdays · 10-25-2009, 05:20 PM

Yes, my apologies. They used the 6 month time frame alot in the plan and I thought you were asking about the "Up to six month reduction of pi (not ti) of up to 30% to have time to work out other options. But, this is not as good as the prior plan where could reduce up to 50% of piti" part. I agree with you that the plan is not as good as the prior plan. It seems from reading the new plan guidelines that the purpose of the plan was to have borrowers show a good faith effort to want to stay in their homes. Like we don't show enough effort???????????? Are they kidding me? This is like a second full time job and functioning on zero sleep for weeks at a time before one finally gets 1 night sleep every 3 weeks out of sheer exhaustion.

darkdays · 10-25-2009, 05:23 PM

Quote:

Originally Posted by litehouse01

Will this be a given if denied after going thru the trial payments? To give a person some time to come up with money to save their home? I'm not denied yet but always looking for a backup plan ....And is it possible they may have something in house to offer? Making 4th trial payment nov1

Yes, this should be offered as a back up plan after other avenues to avoid foreclosure have been reviewed. Although not as good as the 50% PI forbearance plan prior to this, it is a better alternative to mod denied and see you in foreclosure. I'm with you on having a back up plan. I have about 3 back up plans right now and my head is spinning.

litehouse01 · 10-25-2009, 05:51 PM

My head is spinning also... I can't sleep at night...its really taking a hugh toll on me and my husband.........

davephx · 10-25-2009, 07:27 PM

Fannie at least use to have their own 3% minimum plan in addition to the old Homesaver Forbearance now the new one. But don't have much more info on it but was mentioned to me by the manager at Citi I was working with.

We are all under huge stress and lack of sleep, so much time trying to keep up and fight for our homes. For me its the rollup of the back payments into a mod that is the most important (almost $20k from my 6 months battle of getting a mod) but going forward the reduced payment if can get at 31% is big savings. And then the 2nd if only 2MP gets off the ground. But as written 2MP depends on a HAMP not Fannie or inhouse to be required.

BadBobMo · 10-25-2009, 08:40 PM

Timmy=Bakers=Self Cure=Greed=No 2MP=Greed
Look they all are going to do everything that they can come up with not to do the right thing NPV period.

davephx · 10-25-2009, 08:59 PM

Quote:

Originally Posted by litehouse01

Will this be a given if denied after going thru the trial payments? To give a person some time to come up with money to save their home? I'm not denied yet but always looking for a backup plan ....And is it possible they may have something in house to offer? Making 4th trial payment nov1

Yes, in theory. I have been assured will be contacted with other options if denied for HAMP... but I don't trust that as too many "next day" or fast sales have occurred after denial.

However I think most of these have been with private investors. I THINK and PRAY Fannie is better to work with on other alternatives based on what Citi and others have told me.