Fannie Mae and Freddie Mac will offer a simplified loan modification process. Beginning July 01, 2013, servicers will be required to offer borrowers who are at least 90 days, but not more than 24 months, delinquent on their mortgage a trial modification without requiring financial or hardship documentation.
If the homeowner makes three timely trial modification mortgage payments, their mortgage will be permanently modified. Additionally, homeowners who provide documentation of their finances and hardship could receive “a modification with additional savings.”
The Eligibility Requirements:
This appears to be a good initial program. This program has the potential to help many homeowners avoid foreclosure. While much remains to be seen, we do like the following aspects of the program:
- No documentation- Many of our clients get frustrated and exasperated by the constant requests to provide the same documents over and over again.
- No action required- Servicers will contact the homeowners directly. Homeowners will not have to hire a third-party to help them with the loan modification (equals more savings for the homeowner).
- Length of trial modification- Three months is a reasonable amount of time. We have seen some trial modification go on for 6 months or more (this can be very stressful for the homeowner).
- Investment properties are eligible.
Read the full press release here.
We are here to assist you! Call (516) 858-2620 to schedule an appointment with The Law Firm of Vaughn & Weber, PLLC.
Are Joint Bank Accounts Good or Bad?
Joint bank accounts can be good from an estate planning perspective. Upon the death of one of the joint owners, the funds in the account automatically pass to the surviving account holder by operation of law.
Joint bank accounts can be a problem when it comes to filing bankruptcy. The monies in the joint account are considered fully owned by each person named on the account. Therefore, the joint account holder who files bankruptcy may be required to exempt all funds in the joint bank account, or risk losing a portion of those funds to creditors.
Note: Your specific situation may bring forth additional concerns about, and/or benefits to having a joint bank account. It is always good to get information and/or guidance pertaining to your specific situation.
We are here to assist you! Call (516) 858-2620 to schedule an appointment.
The Law Firm of Vaughn & Weber, PLLC.