About three summers ago, LeBron James announced that he would be “taking [his] talents to South Beach, and play for the Miami Heat.” The Heat’s signing of “The Big 3” (Dwyane Wade, Chris Bosh, and James) prompted James to promise the Heat fanbase, “not one, not two, not three,” but seven NBA Championships.
Unfortunately, the Heat’s first playoff-run with “The Big 3” ended in an unfulfilled promise, as they were bounced by the Dallas Mavericks. Now, with recent back-to-back NBA championships in 2012 and 2013, James and the Heat are well on their way to erasing their 2011 failures and delivering on James’ promise.
Like James, homeowners who have struggled to make good on their promise to pay their mortgages will be provided with an opportunity to refinance under a new initiative starting July 1, regardless of their past transgressions.
The Federal Housing Finance Agency (FHFA) recently announced their Streamlined Modification Initiate (SMI) that will simplify loan modifications and allow troubled borrowers to avoid foreclosure.
The initiative grants delinquent borrowers with little to no equity in their homes an opportunity to refinance their mortgage absent (1) a demonstrative showing of hardship and (2) information documenting their current income, credit rating, or employment situation.
Beginning July 1, servicers of loans backed by Freddie Mac and Fannie Mae will be required to allow eligible borrowers a chance to modify their existing mortgage, without a required showing of hardship.
The FHFA claims borrowers who qualify for a streamlined modification should, on average, save (30) thirty-percent on their current monthly mortgage payments. To qualify for a streamlined modification, borrowers need: