A new pilot program launched by the Federal Housing Finance Agency (FHFA) and Fannie Mae and Freddie Mac will provide mortgage help to struggling borrowers in Cook County.
Under the new MyCity Modification program, most borrowers with Fannie Mae and Freddie Mac conventional mortgages can have their interest rates reduced to 2 percent, the terms of their loan extended out by as much as four years and their payments deferred on a portion of the principal. This will help reduce the borrower’s monthly payments by up to 60 percent.
Borrowers who are more than 90 days delinquent on their loan will receive an offer from the servicing company handling the mortgage on behalf of Fannie and Freddie. The value of their home must be $250,000 or less.
More information on the new initiative is available here.
In addition, Fannie Mae and Freddie Mac established a partnership with the National Community Stabilization Trust (NCST) to allow NCST buyers to have up to 12 business days to express interest in a property and agree on a price before the property is made available for purchase to the general public.
Only NCST community buyers are eligible. For more information about becoming an NCST community buyer, contact firstname.lastname@example.org.