Last week Fannie Mae announced that the Streamlined Modification Program (SMP) would now be available to borrowers. This program is part of an ongoing effort by the GSE to prevent foreclosures. Borrowers of course need to meet certain requirements to participate in the program.

Tammy over at the Arizona Mortgage Team blog has done a nice job putting all the relevant information in one place for borrowers:

Under the Streamlined Loan Modification Program,  your mortgage and escrow payments can be cut to 38 percent or less of an eligible borrower’s gross monthly income by some combination of:

• reducing mortgage rates
• extending the mortgage term up to 40 years
• forbearing on a part of the principal amount until the loan is paid off, then a balloon payment is required

Streamlined Loan Modification Program Eligibility Requirements

• You must own and occupy the property as your primary residence
• You must have missed at least three mortgage payments
• You cannot have filed for bankruptcy

Head on over to her blog to read more.

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