Question

The client and her husband purchase the home and things are fine for the first couple of months. After the wife exhausts all her maternity benefits, their income becomes dramatically reduced and fail to make several mortgage payments. Because they were so embarrassed by missing their mortgage payment so soon after buying the home, the couple has avoided speaking to their mortgage servicer, despite several attempts by the servicer to get in touch. Now they've received a letter threatening foreclosure. Panicked, they reach back out to the housing counselor for help.

Which characteristic of this situation makes the clients ineligible for the Fannie Mae or Freddie Mac Flex
Modification Program?

A- The clients are in imminent default.
B- The wife is still employed while on medical leave.
C- The clients are more than 60 days past due.
D- The loan originated less than 12 months ago.

Answer 1

The clients are ineligible for the Fannie Mae or Freddie Mac FlexModification Program because they are more than 60 days past due. The fact that the loan originated less than 12 months ago may also contribute to their ineligibility.

Step-by-step explanation:

The clients are ineligible for the Fannie Mae or Freddie Mac FlexModification Program because they are more than 60 days past due. This characteristic disqualifies them from participating in the program. Additionally, the fact that the loan originated less than 12 months ago may also contribute to their ineligibility. The other characteristics mentioned in the question, such as being in imminent default or the wife still being employed while on medical leave, do not necessarily make the clients ineligible for the program.