Written by: Linda Ingram
HOPE NOW, the private sector alliance of mortgage servicers, non-profits, counselors and investors announced this week that it has developed a new program called SMP or “Streamlined Modification Plan”. SMP expands what many lenders are already doing and will begin December 15th. It is the result of working with the US Treasury, HUD, Fannie Mae, Freddie Mac and major loan servicers.
Under this plan, lenders will use an expedited process to modify or restructure loans making payments more affordable for homeowners. Faith Schwartz, executive director of HOPE NOW, says, “SMP will help stabilize the housing market”.
Eligible borrowers must be 90 days late, can be in foreclosure but not bankruptcy and must be living in single family owner occupied property
For the modification to be complete, the homeowner must make 3 payments within 90 days of the new modified payment and be current on day 90.
Escrows for taxes and insurance are mandatory.
Lenders will send letters to qualified borrowers but borrowers should not hesitate to call their lender to see if they qualify.
All the participating servicers and investors encourage borrowers to contact housing counseling agencies. They can receive free counseling by calling Beyond Housing 314-533-0600 x22 or visit www.hud.gov to find a counselor.