Freddie Mac is the government controlled mortgage giant which along with Fannie Mae has purchased most of the mortgages in this country. They currently have 340,000 loans where the borrowers have missed payments and are facing foreclosure. While Freddie Mac owns these loans, they are being serviced by other mortgage companies such as Wells Fargo, CitiMortgage, J P Morgan Chase and U S Bank.
freddie mac foreclosures
While Freddie Mac owns these loans, they have sold them to investors in mortgage backed securities. Any time one of these loans is foreclosed, both the investor and Freddie Mac lose a substantial amount of money. So it is in Freddie Mac's best interests to help people facing foreclosure save their homes if at all possible.
Through September of 2009 the results of the Making Home Affordable Loan Modification Program have been a dismal failure. Trial loan modifications have been started on only 16% of the estimated 3,100,305 loans that are eligible. The mortgage companies in the program are not moving quickly enough. So Freddie Mac has taken two steps to help people facing foreclosure save their homes.
Step One - Titanium Solutions
Many people who are facing foreclosure have no idea of what they can do to save their homes. Most feel that it is hopeless and that there is nothing they can do. They are going to lose their homes. So they do nothing. They don't contact their mortgage company. They don't seek help from a lawyer or expert in loan modification. They just wait for their mortgage company to take their home and evict them.
Some people have contacted their mortgage company and asked about a loan modification. However, they never submit the information their mortgage company needs to process and rule on their application.
The first step Freddie Mac took was to address both of these situations. They hired Titanium Solutions. Titanium Solutions hires representatives locally to go out and meet with people who have fallen behind on their loan payments and are facing foreclosure. These representatives are normally real estate agents who know their areas well.
The first group of people the Titanium representatives call on are those who have been notified by their mortgage company that the foreclosure process has started and who have not responded. The Titanium representatives explain the Making Home Affordable Program to them and what steps they can take to request a loan modification.
The second group of people The Titanium representatives are targeting are those who have not submitted all of the information that their mortgage company needs to evaluate their request for a loan modification. They will ask them to get the missing information and will help them submit it to their mortgage company.
The third group of people the Titanium representatives help are those who have started trial loan modification periods. They help them complete the paperwork to convert the trial modifications into permanent ones at the end of the three month trial modification period.
Freddie Mac felt that one of the challenges people facing foreclosure had was trusting that someone really wanted to help them save their homes. They felt that the personal contact by the Titanium representatives especially since they were people right there in their own community would go far in establishing this trust.
Step 2 - Home Retention Services
Freddie Mac has also hired Home Retention Services. This is a subsidiary of Stewart Lender Servicers, Inc. Many of the mortgage companies participating in the Making Home Affordable Modification Program have a large backlog of applications for modifications to be processed. Representatives from Home Retention Services assist these mortgage companies process these applications.
It is interesting that Freddie Mac did not require the mortgage companies to increase their staffs to be able to handle the large volume of applications they have. Rather they chose to hire an outside firm to provide this service.
The work being done by the representatives of both Titanium Solutions and Home Retention Services should help increase the number of trial loan modifications. It should also help many more people who are facing foreclosure save their homes.
If you are facing foreclosure and are contacted by a representative from Titanium Solutions, remember that the representative has been hired to help you. Meet with them and let them assist you.
Your application for a loan modification may be processed by a representative from Home Retention Services and you may never know that. If you do find out that one of their representatives is processing your application, remember that they are helping your mortgage company process the back log of applications that they have. Since they are more impartial, the results may be more favorable than if your mortgage company processed your application.