Tuesday, October 5, 2010

Military Forbearance Option

According to the Fannie Mae website http://www.knowyouroptions.com/military/

If you’re facing a financial hardship due to a death or injury of a service member on active duty, you may be eligible for a special military forbearance option. Read below for more details and for additional assistance, you can also visit Army OneSource or Military OneSource.

A forbearance is an agreement between you and your mortgage company to temporarily suspend or reduce your monthly mortgage payments for a specific period (usually between 90-180 days) of time. This option lets you deal with your short-term financial problems by giving you time to get back on your feet and bring your mortgage current.
With a military forbearance, you may qualify for additional benefits such as a longer forbearance period—up to 6 months—and no adverse impact to your credit score (all credit reporting related to your mortgage loan will be suspended during the forbearance period). Additionally, a special hotline has been set up for additional guidance about this option and other mortgage assistance programs—877-MIL-4566.

Military Forbearance may be an option if:
  • You are ineligible or do not want to refinance
  • You are facing a financial hardship due to either an injury or loss of spouse in active duty
  • You are several months behind on your mortgage payments

What are the benefits?

  • Lower or temporarily suspend your monthly payment for up to 6 months—giving you time to improve your financial situation and get back on your feet
  • No adverse credit reporting (related to your mortgage loan) during the forbearance period
  • Stay in your home and avoid foreclosure

How does it work?

Forbearance reduces your monthly mortgage payment—or suspends it completely—during the forbearance period (usually between 90-180 days). If you qualify for forbearance, you and your mortgage company will sign an agreement that will outline the forbearance terms:
  • length of forbearance period,
  • reduced payment amount (if the payment is not suspended), and
  • the terms of repayment.
After the forbearance period has ended, you will need to repay the amount that was reduced or suspended. However, you usually have a few ways you can repay—moving the payments to the end of your mortgage, which will lengthen the term; making a one-time payment for the amount; or adding a specific amount to your payments each month until the entire amount is repaid (see Repayment Plan for more information).
If you are still struggling with your mortgage payments after the forbearance period is over, you may be able to qualify for a modification that would permanently change the terms of your mortgage.

Next steps

Step 1Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:
  • your mortgage statements, including information on a second mortgage (if applicable)
  • your other monthly debt payments (e.g., car or student loans, credit card payments), and
  • your income details (paystubs and income tax returns).
Step 2Explain your current situation—Be ready to outline your current hardship and explain why you are having trouble making your mortgage payment and if this is a short-term or long-term problem. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.
Step 3Contact the Fannie Mae Military Support Hotline—Call 877-MIL-4566 (877-645-4566) and tell them you are interested in a Military Forbearance.
Contact us today to see if you qualify for this option. If you need additional assistance, you can also visit Army OneSource or Military OneSource.

Friday, October 1, 2010

Military Interstate Children's Compact Commission

The Military Interstate Children's Compact Commission (MIC3) has a new website: http://www.mic3.net/

Military families move between postings on a regular basis, and while reassignments can often be a boon for career personnel, they can be difficult for the children of military families. The average military student faces transition challenges more than twice during high school and most military children will attend six to nine different school systems in their lives from kindergarten to 12th grade. The Compact therefore seeks to make transition easier for the children of military families so that they are afforded the same opportunities for educational success as other children and are not penalized or delayed in achieving their educational goals.