Below are some of the most commonly asked questions that New Hampshire Housing (and other) home owners are asking about the new federal Making Home Affordable refinance and loan modification program. We hope the answers provided are helpful to you.

 

How can I get the 2% interest rate I read about in the newspaper?

The 2% rate you read about represents part of the U.S. Treasury loan modification program and it is available thru participating loan servicers if it is warranted by the facts and circumstances in a particular case.  That program does not apply to your loan if you have a New Hampshire Housing loan.

Can I defer a portion of my loan to reduce my loan payments?

Deferral of a portion of a loan to reduce loan payments is one possible loan modification technique among other options.  It is also part of the U.S. Treasury loan modification program.  If you have a financial hardship, we will review the facts and circumstances of your situation and determine what, if anything, we can do to assist you.

Why wouldn't the Federal program apply to my loan?

The program announced by the Treasury is a voluntary program and lenders and servicers have to decide if they are going to use the Treasury guidelines to work with borrowers who are experiencing financial difficulties.

Why wouldn't the New Hampshire Housing want to participate in such a program?

New Hampshire Housing Finance Authority has to consider the interests of both our borrowers, like you, and our obligations to the bondholders who provide funds to us to make mortgage loans.  The Authority has concluded that loan modifications as described in the Federal program will not allow us to satisfy our obligations.

Do I need to be behind on my mortgage payments to be eligible for a modification?

No.  If you are experiencing a financial hardship and know that you will be unable to continue making the required payments on your mortgage loan, we will work with you to identify possible solutions to your current problem.  However, borrowers who are seriously delinquent and pending foreclosure are taking priority as we work through numerous requests.

I have two mortgage loans on my home.  Can you help me with both loans?

We may have some suggestions about your other loan but we cannot modify or refinance that loan.

I owe more than my house is worth.  Am I still eligible for a loan modification?

Yes, although you are not eligible just because you owe more than your house is worth.  The primary objective of any loan modification or payment plan is to help a borrower who has a financial hardship avoid foreclosure by modifying a troubled loan to achieve a payment the borrower can afford.

I have mortgage insurance.  What role will the insurance company play in this process and who has to contact them?

Mortgage insurance companies provide some assistance with loan modifications.  Frequently they advance claims and help bring loans current.  Some mortgage insurance policies also include temporary mortgage payment assistance in the event of job loss.

New Hampshire Housing (or Dovenmuehle) will work with your mortgage insurance provider to determine what benefits are available to help with the loan modification process.

How much will a loan modification cost me?

There are certain processing and legal fees involved in modifying loan documents.  Those fees can sometimes be included in the modified payment amounts.  The total will be approximately $500.

What should I do to begin the process?

You will need to complete a financial information package that can be sent to you by calling (603) 472-8623 or 1-800-640-7239 and asking for the Loan Servicing Department. In the meantime, you can accumulate financial records such as your tax return, pay stubs and payments on other loans or credit cards.  Also, if you cannot make your full mortgage payments, any amount that you can accumulate will be very helpful in the process.

My loan is already scheduled for foreclosure.  What can I do?

We can work with you if you are committed to retaining your home.  We will need to determine that you have both the ability and commitment to keep your home and you will need to respond very quickly to all of our information requests.  We will decide whether or not to postpone your foreclosure based on the information you provide.

If my loan is not a New Hampshire Housing loan, who should I contact regarding a loan modification?

You should contact the company that services your loan, meaning the company from which you receive mortgage billings and to which you send your mortgage payments.  Their contact information should be on your monthly billing statement.

How do I know if Fannie Mae or Freddie Mac owns my loan so I would be eligible for refinancing?

If your loan was provided thru New Hampshire Housing, it is not owned by Fannie Mae or Freddie Mac.  If there is a possibility that your loan is owned by either of those entities, you can find out by contacting your mortgage servicer or by contacting Fannie Mae (www.fanniemae.com/loanlookup) or Freddie Mac (www.freddiemac.com/mymortgage) directly.