Milpitas North San Jose Berryessa Real Estate News

Freddie Mac is replacing its Debt Coverage Ratio program with a new option, called a Standard Modification.  The program is designed to assist borrowers who are ineligible for a HAMP loan modification or have previously defaulted on a HAMP or other loan mod.  For those who are approved, the program reduces a borrower's mortgage principal and monthly payment by at least 10 percent each, thereby making the payments more affordable.

To qualify, homeowners must be at least 60 days past due on their mortgage.  Those who are not at least 60 days past due can qualify by proving they are in imminent danger of default, through demonstrating an eligible hardship and providing verification of income.