In hopes of continuing the economic improvement observed during 2012 and the first quarter of this year, Freddie Mac announced it would be taking actions toward expediting financial relief for thousands of distressed families.
In a recent release, the government-sponsored enterprise announced one of its latest offerings, the Streamlined Modification program, will be immediately available to all borrowers who meet eligibility requirements. The plan, which was not scheduled to take effect nationwide until July 1 of this year, was previously available to only victims of Hurricane Sandy. However, organization officials said consumers nationwide can now capitalize on current conditions and favorable rate levels - in hopes of keeping the ongoing housing recovery moving forward.
"Today, Freddie Mac is giving a green light to its mortgage servicers to speed up financial relief for potentially thousands of families with delinquent mortgages across the nation," Freddie Mac said in a statement. "Now mortgage servicers can send eligible borrowers their Streamlined Modification trial period terms as soon as they are ready and borrowers can modify their loans by making the three trial period payments on time. No borrower documentation is needed. Freddie Mac is focused on adding momentum to the housing recovery by giving distressed borrowers more options to avoid foreclosure."
In order to qualify for eligibility and take advantage of the program, borrowers must be at least 90 days - but no more than 720 days - delinquent on mortgages which they've had for a minimum of 12 months.
As mortgage records afford individuals the opportunity to lock in low interest rates, lending companies nationwide may be experiencing increased safety and soundness in their business practices.
Foreclosure activity hits six-year low in April
The announcement from Freddie Mac is well-timed and may help a significant number of homeowners, as it comes on the heels of a report by RealtyTrac that shows foreclosure filings last month were seen at levels 5 percent lower than March and 23 percent below figures recorded in April 2012.
The online online marketplace for foreclosure properties and real estate data reported the 144,790 U.S. properties which had active foreclosure filings in April represented a 74-month low, marking the lowest level observed since February 2007, according to the report. During the month, one in every 905 American households had a foreclosure filing.
Meanwhile, foreclosure auctions in judicial states reportedly hiked to a 30-month high during April, showing lenders' continued efforts toward further shrinking the national foreclosure inventory.