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No loan modification for those getting unemployment benefits

Shared by Sara on Sat Sep 25, 2010 3:36 am
According to a new guideline issued by Fannie Mae, the unemployed borrowers receiving unemployment benefits will not be able to qualify for loan modification. The unemployment benefits will not be considered as the income of the borrower when he or she applies for a mortgage modification. This rule will be effective from 1st of November, 2010. Source: http://money.cnn.com/2010/09/22/news/economy/foreclosure_prevention/index.htm

Community Members Opinion

jerry

Joined: 17 Oct 2005

Moderator
Posts: 2708
Location: MICHIGAN

429.63 Dollars($)

Posted: Sat Sep 25, 2010 3:56 am Post subject:

A large number of people will become ineligible to get a loan modification due to this new guideline. However, in order to give a respite to the borrowers, Fannie Mae has decided to evaluate such unemployed borrowers for forbearance plans of up to six months. This new rule will be similar to that of the Treasury Department's rule to not use unemployment insurance as income in order to apply for Home Affordable Modification Program (HAMP).

dipaligopale

Joined: 25 May 2010

Posts: 790

22.70 Dollars($)

Posted: Sat Sep 25, 2010 7:35 am Post subject:

I think this way there will be more number of foreclosures and i doubt who is going to benefit from this new rule. Although the concept is really nice but does it really improve the market conditions? More stringent regulation lesser chances to get participation from people in large and thus again stagnant position of the market.........few takers..... DIPA _________________ 1.The best of intentions must still have directions !--Unknown author 2.When I hear somebody sigh, "Life is hard," I am always tempted to ask, "Compared to what?" - Sydney J. Harris


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