More lenders allow “early workout” loan alterations

Borrowers with loans owned by Fannie Mae no longer have to be behind in payments in order to qualify for a loan modification.  Borrowers facing financial difficulty, such as losing a source of income, now can apply for an “early workout” loan alteration.  Under Fannie Mae’s program, borrowers who qualify will enter into a trial period of reduced payments, usually for four months.  If the reduced payments are made on time each month during the trial period, the modified mortgage terms may become permanent. 

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