Freddie Mac and Fannie Mae will begin letting some homeowners who are upside down in their mortgages to literally give back their home and have their debt cancelled. This is slated to begin on March 1st of this year.
If you are thinking….this is too good to be true….You’re right!
There are many requirements to qualify for this program. Below, are just a few….
- A Seller must be current on their house payments.
- The Seller also needs to be making payments of at least 55 percent of their monthly income for the house.
- You must be able to document that you have a hardship which requires a move.
- Your home must be livable and in good condition.
- There is a risk that the seller might have to surrender 20% or more of their personal assets.
- Sellers will still take a hit on their credit.
- The program does not apply to second mortgages.
This is definitely not a free ride for homeowners who are in mortgage trouble. Even representatives at Freddie Mac say that this program will only help a very small population of homeowners who are underwater in their mortgages.