The Minnesota Home Ownership Center recently announced a new partnership with Fannie Mae to assign two of the government-controlled mortgage backer’s employees to work with the nonprofit, according to a report from Minnesota Public Radio. Currently, MHOC has 63 counselors working at 20 different nonprofit agencies all around the North Star State.
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The Fannie Mae employees will work specifically to help significantly troubled homeowners avoid the threat of foreclosure by reducing the delays they may run into while attempting to modify their existing mortgage, the report said. MHOC believes the Fannie Mae employees will also give the agency greater cachet in obtaining more favorable modifications from lenders, as the home loan giant backs about one-third of all mortgages in the state.
In addition, they will be available to clear up any questions, concerns or confusion they may have about the process, the report said.
“Consumers get real answers to their questions,” Home Ownership Center Director Julie Gugin told the news agency. “The runaround is eliminated. There’s a sense of professionalism and respect that consumers are offered through this program.”
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Foreclosure modifications have helped a large number of consumers avoid losing their homes because they often result in the lowering of a consumer’s payments, if not their principal. However, a modification may will also take a huge chunk out of their credit score.