Conventional mortgages follow state foreclosure law. In judicial states, the lender must file a lawsuit. In non-judicial states, the trustee can proceed without court under the power of sale clause. The timeline varies dramatically by state — from as fast as 60 days in Texas to 300+ days in New York.
Dream Financial Management defends conventional mortgage foreclosures nationwide. Free consultation. Since 1994.
Fannie Mae's standard modification program can reduce monthly payments by up to 20%. Includes interest rate reduction, term extension, and principal forbearance options.
Similar to Fannie Mae — targets 20% payment reduction. Available for borrowers 90+ days delinquent or facing imminent default.
Temporary payment suspension or reduction during hardship. Fannie/Freddie guidelines allow up to 18 months total forbearance for COVID-era impacted loans.
Dream Financial Management helps Fannie Mae and Freddie Mac borrowers access loss mitigation, challenge standing, and stop foreclosure. Since 1994.
Fannie Mae's standard modification program. Reduces the borrower's monthly payment by up to 20% through interest rate reduction, term extension up to 480 months, and principal forbearance. Available for conventional loans owned or guaranteed by Fannie Mae.
Similar to Fannie Mae's program but with Freddie Mac-specific guidelines. Targets a 20% payment reduction. Interest rate adjustment, term extension, and principal forbearance available.
If you have recovered from a temporary hardship and can resume your regular mortgage payment, Fannie Mae and Freddie Mac allow servicers to move missed payments to the end of the loan as a non-interest-bearing balance due at payoff or refinance.
Voluntarily transfer the property to the lender to avoid foreclosure. The waiting period to buy another home may be shorter than with a foreclosure (2-4 years vs. 7 years).
Dream Financial Management helps homeowners access Fannie Mae and Freddie Mac loss mitigation and fight conventional mortgage foreclosure. Since 1994. Free consultation.
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.