Fannie Mae to Offer New Mortgage

According to sources, Fannie Mae will be offering a new mortgage for homeowners upside down on a Fannie Mae packaged loan. They will let the homeowner refinance that loan at a lower rate despite being underwater.

The homeowner must be current on the original loan. The new loan allows the homeowner to achieve a lower mortgage rate if a refinancing can be justified by current mortgage rates even though the value of the home is below market appraisal.

This is a great idea, and one that I recommended in a recent Four In Four video. This is a way to prevent same foreclosures before the event.