Freddie Uses YouTube for Government Repo Prevention Program

Freddie Mac has launched a video on YouTube to instruct distressed homeowners on how they can accelerate the processing of their loan modification or loan refinancing applications under the Obama administration’s government repo prevention program.

The video, titled “Stop Foreclosure: Documents Your Lender Needs to Help You,” lists the documents that homeowners should prepare before calling their lenders or servicers for loan modification or refinancing.

The video reminds homeowners that if documents are ready and complete, they can answer readily whatever the servicer or lender representatives ask. A borrower’s eligibility to certain programs can be determined easily if personal financial information related to the mortgage is readily available.

Based on the video, homeowners planning to apply for loan modification or loan refinancing under the federal government repo prevention program should prepare all their loan-related financial documents such as the most recent monthly home loan statement; pay slips that show the monthly income of the family; most recently filed tax return; home equity or second home loan statements; minimum monthly payments and account balances on student loans, car loans, credit card loans and other consumer debts; and brief description of the causes of the family’s mortgage delinquency.

Ingrid Beckles, a senior vice president at mortgage guarantee provider Freddie Mac, said mortgage lenders and servicers have been overwhelmed by extraordinary numbers of loan modification applications, so homeowners can help their lender representatives if they already have the information and documents needed.

Since the launching of the details of the government repo prevention program in March, the program has been expanded at least twice to extend the program to more distressed American homeowners.

Among the tweaks is the increase in the loan-to-value limit for homeowners applying for refinancing under the government repo program. Homeowners whose mortgages are guaranteed by Freddie Mac or Fannie Mae can now refinance even if they are underwater as long as their loan amounts are not higher than 125 percent of their home values.

Another tweak is the use of the $8,000 federal tax credit for down payment and closing costs for first-time home buyers.

In addition, the jumbo loan limits that would be guaranteed by the FHA have also been revised in 2008 to respond to the needs of homeowners in high-cost areas, raising the loan limit from $417,000 to $729,000 in high-cost housing markets.

On the whole, troubled homeowners can be helped faster under the government repo program if they also do their part in facilitating the process.

Related Posts:

• Freddie Mac Decided to Suspend Government Foreclosures
• Refinancing Problems Hinder Foreclosed Property Program
• Foreclosed Homes Continue to Be Part of Fannie and Freddie
• HUD and Freddie Enhance Government Foreclosure Program
• Fannie Mae, Freddie Mac Help Fund Program for Foreclosure Homes