Your Lender’s Dirty Little Secret

Have you ever wondered how your lender or servicer decides what to do when you submit a hardship package to them?

Well, it’s actually pretty simple. And while most servicers don’t put their workout hierarchy out there for everyone to see, Fannie Mae has. And while not all servicers and lenders will follow this process exactly, most will be very close.

The first thing they do is determine if you qualify for a Home Affordable Modification. If you don’t theyll see whether your hardship is short term or long term and then they’ll go down the appropriate leg of the chart above.

We have articles on most of these programs if you would like more info from your trustworthy source for foreclosure information:

Payment Reduction Plan

Forbearance

HAMP – Home Affordable Modification

HAMR – Home Affordable Refinance

HAFA – Home Affordable Foreclosure Alternative Program

Home Affordable Short Sale and Deed in Lieu Program

Hope for Homeowners

NACA Home Save Program

State programs for Loan Modification

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