Loan Modification - Making Home Affordable Loan Mod Guidelines - Realestatemarketingthisweek.com

realestatemarketingthisweek.com - Fannie Mae is proposing to give you a 50 year loan modification with an adjustable rate - Part 6 - The next one is that your loan to value on your house has to be at least 90% of the property value. So in other words everyone under 90% gets foreclosed on? Right, if you only owe 80% of what your home is worth, they can foreclose on you, take your house and they dont lose as much money. Back when I was working with Fannie Mae selling repos almost 20 years ago now, they always gave us the figure that they lost 20% of the homes value every time they had to foreclose. So they have plenty of room to sell your house if you only owe 80% on it. So if you owe, lets just throw out some numbers here, lets say your house is worth $100000 and you owe $80000 on it, well they are going to lose a little bit but they are going to make it back when they sell your house for $100000. Yes, they would just as soon kick you out and keep their money. Yes, exactly I am not necessarily going to say that Fannie Mae is going to kick you out of your house, however the reason why they have this guideline is very simple, they are not going to lose money on you if they have to foreclose on you when you are under 90%. They certainly are not going to lose very much money. If you have subordinate loans it may be left outstanding and will not be considered in the LTV, so lets just give an example here, your house is worth $300000 and you have a $300000 1st mortgage and you ...