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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (99164)	6/30/2009 6:41:48 PM
From: Jim McMannis	1 Recommendation Read Replies (1) \| Respond to of 116555

You know what they say..."wait 'til next year!" worse...

To: mishedlo who wrote (99164)	7/1/2009 12:07:43 AM
From: Yulya	Read Replies (2) \| Respond to of 116555

My brother-in-law"s daughter just received a $55,000.00 Fannie Mae forebearance. Both him and his daughter believe that the $55.000.00 just disappeared into a black hole and does not have to be repaid. I e-mailed them this section of Fannie Mae's guidelines: "Step 4: If necessary, the servicer must provide for principal forbearance to achieve the target monthly mortgage payment ratio. The principal forbearance amount is non-interest bearing and non-amortizing. The amount of principal forbearance will result in a balloon payment fully due and payable upon the earliest of the borrower’s transfer of the property, payoff of the interest bearing unpaid principal balance (UPB) or maturity of the mortgage loan. The modified interestbearing balance (i.e., the unpaid principal balance excluding the deferred principal balloon amount) must create a current mark-to-market LTV (current LTV based upon the new valuation) greater than or equal to 100 percent if the result of the NPV test is negative. A principal writedown or principal forgiveness is prohibited on Fannie Mae mortgage loans." efanniemae.com I went on to explain the loan modification may allow the lender to pursue the debt in event of a default/foreclosure. Needless to say, both are incredulous.