Conventional mortgages — those backed by Fannie Mae or Freddie Mac — follow the GSEs' servicing guidelines which set the rules for foreclosure timelines, loss mitigation, and borrower protections. These are the most common mortgages in America. The key loss mitigation tool is the Flex Modification program. At Dream Financial Management, we help conventional borrowers navigate GSE guidelines and stop foreclosure nationwide since 1994.
Before pursuing loss mitigation, determine whether your loan is owned by Fannie Mae or Freddie Mac. Use the Fannie Mae Loan Lookup tool (knowyouroptions.com/loanlookup) or Freddie Mac Loan Lookup (sf.freddiemac.com/tools/loanlookup). The GSE owner determines your available options. About 60% of conventional mortgages are GSE-backed.
The primary GSE modification program. Can reduce your monthly payment by 20%. Uses: interest rate reduction, term extension (up to 480 months), principal forbearance. Target: 20% payment reduction. Must be owner-occupied or rental. Trial payment not always required.
Past-due amounts moved to end of the loan as a non-interest-bearing balance due at payoff, refinance, or maturity. No modification to loan terms. Ideal if your hardship is resolved and you can resume regular payments.
GSE short sales require documented hardship. Relocation assistance varies (historically $3,000-$10,000 under HAFA; programs may vary). Full deficiency waiver standard. Short sale guide →
Voluntary transfer of property. Standard GSE DIL includes deficiency waiver. Must have attempted short sale first (in most cases). DIL guide →
Dream Financial Management helps conventional borrowers access Flex Modification, payment deferral, and all GSE loss mitigation options. Since 1994. Free consultation.