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Is there help for someone underwater whose loan is not owned by Freddie or Fannie?

My parents "own" a house in Reno in which they owe about $160k and it's worth about $110k.  They have not been late on a payment, have decent credit and are paying 6%.  Is there any help for someone in their shoes if their loan is just a regular loan (not Frannie or Feddie owned)?  They are on a fixed income and it would sure be nice for them to get some relief here, especially considering what they've already lost on it. :(  Thanks for your help.
  • July 09 2012 - Reno
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Answers (5)

10% of the mortgages are not backed by Fannie or Freddie...servicers today are making every effort to help folks avoid foreclosure...

Have they received a letter from their servicer offering options to avoid foreclosure?  For homeowners in distress with loans not backed by Fannie or Freddie they may be eligible to receive up to $45K at completion of short sale.  Some conditions apply...sellers must respond quickly and follow lender requirements, home must be left in good condition and in broom swept condition and vacated shortly before the closing, etc.

Homeowners in distress with Fannie and Freddie backed loans are eligible for $3K relocation assistance
  • July 11 2012
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Thank you so much for the responses.  I appreciate the advice.

  • July 10 2012
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There may be help under the Nevada Hardest Hit Fund. It is a program that is in place for Nevada Homeowners. The program was funded with 250 million dollars and has several different parts. Their Phone # is 1-855-428-4357. You can google them to see their web site. If you decide that a short sale is the option that will work best I would be happy to help you find a knowledgable experienced agent. I work with a well trained group of Real Estate agents nation wide that know and effectively close short sales. I hope you will be able to find a solution from the Hardest Hit Fund Program. i have talked with them and they are very helpful.I am always available to answer any questions you have. Thank You Suzie Marquardt [email removed by Zillow moderator]
  • July 10 2012
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Might be a longshot but try looking up the National Mortgage Settlement. If their loan meets that criteria that is one option out there for loans not owned by Fannie or Freddie.
  • July 09 2012
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There's nothing that you can really do at this point with HARP 2.0. You you have to wait for HARP 3.0 to come out and see what kind of guidelines they open up. No one's really sure when that's going to be but it should be coming within the next couple months.
  • July 09 2012
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