Starting today (July 1, 2013) a new program to help struggling home owners was put in place by the Federal Housing Finance Agency. The program name – Streamlined Modified Initiative. The intent of the program is to reduce monthly mortgage payments by either extending your mortgage term, i.e. from 30 to 40 years or to offer a lower interest rate.

Different than other loan modification programs, no requirement for home owners to complete and submit financial documents or hard ship letters. The only requirement is to that three consecutive mortgage payments under the new terms are made and then it will become permanent.

Other qualifications require that the mortgage is at least 12 months old and no more than 24 payments have been missed, the loan is either Fannie Mae or Freddie Mac backed and the balance is 80 per cent or more of the value of their home.

For more information you can visit Freddiemac.com and search for Streamlined Modification Initiative or call your mortgage servicer.

Source: CNNMoney.com

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