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New Foreclosure Prevention Program by Fannie Mae Initiated in Florida

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By : Scott Zahid    99 or more times read
Considering the performance of the earlier foreclosure programs, there are speculations about the success of this new prevention program. However, the earlier prevention programs were more physical in nature and mostly backed by the federal government. They proved to be more time consuming and involved many levels of administration that eventually delayed the overall process, and only one fourth of the total target customers benefited from the program.

One of the mortgage giants, Fannie Mae, has launched this new foreclosure prevention program. Unlike other programs, this one does not provide any monetary grants to the distressed homeowners. It is a virtual program intended at allowing homeowners to understand and know various options available at their disposal if they default on their loans or are undergoing foreclosure process.

A website called “WaysHome” is an interactive tool where homeowners can login and by answering various questions and using different permutations and combinations of situations, they can see the outcome of their decisions. Various solutions like modification for their loan, short sales and new repayment plans are provided at the end of the evaluation.

A person can go back as many times and change various settings to see different results. Other than helping property owners with different scenarios, that website offers different tools to provide foreclosure related information like types of documents required before approaching a lender in regards to modification or foreclosure process.

The website aims at helping people at early stages. If this program is successful, it is expected to reduce the time of getting a modification to four months down from eight months. Amy Lewis, a foreclosure specialist, says “This tool will help alleviate some of the nervousness that’s associated with them (people) contacting their mortgage company or looking for help.”

The program has been piloted in Florida, which is among the worst hit by foreclosure properties. It has been launched in six of twenty judicial circuits in Florida. Collins Centre one of the judicial circuit has already received about 1800 applications out of which they have been able to help one third of distressed homeowners with modifications as early as four months after defaulting on their mortgage.

Ned Pope, Vice President of Collin Centre commenting on foreclosures said, “The key is engaging people at an early enough stage in the process where a loan modification that salvages the property is still a very realistic possibility.”

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