Fannie Mae Mortgage Help
Fannie Mae Loss Mitigation Options — What Delinquent Borrowers Can Request
Fannie Mae Servicing Guidelines require servicers to evaluate every delinquent borrower for all available options before foreclosing. Submitting a complete loss mitigation application before the foreclosure referral date legally pauses the process.
Fannie Mae Loss Mitigation — Option by Option
Forbearance Plan
Your servicer reduces or suspends your payments for a defined period. No payments are forgiven — they are addressed through a subsequent repayment plan, modification, or deferral after forbearance ends.
Who qualifies: Borrowers with a temporary hardship (job loss, medical, natural disaster)
DIY Steps:
1.Call your servicer and request a forbearance plan in writing
2.Document your hardship — letter plus supporting evidence
3.Confirm the plan details and end date in a written agreement
Repayment Plan
You repay the missed amounts by adding a portion to each regular monthly payment over 3–12 months. Fannie Mae guidelines allow servicers to approve repayment plans without requiring a complete loss mitigation application.
Who qualifies: Borrowers who have recovered from hardship and have stable income above their normal payment
DIY Steps:
1.Contact your servicer once income has stabilized
2.Request a repayment plan and propose a number of months you can manage
3.Make all repayment plan payments on time — a single missed payment typically voids the plan
Payment Deferral
Fannie Mae's Payment Deferral moves your past-due balance to the end of the loan as a non-interest-bearing lump sum. Your regular monthly payment stays identical — you simply pay the deferred balance at maturity, sale, or refinance.
Who qualifies: Borrowers who are 2–12 months delinquent and have recovered their normal income
DIY Steps:
1.Request payment deferral consideration from your servicer by name
2.Demonstrate that your hardship has resolved and you can resume regular payments
3.Execute the deferral agreement — no trial payment period required
Flex Modification
The Flex Modification targets a 20% reduction in your monthly principal and interest payment by extending your term to up to 40 years, reducing your rate, and/or deferring principal. It replaces the older HAMP program for Fannie Mae loans.
Who qualifies: Borrowers with a permanent hardship who are 60+ days delinquent or at imminent risk of default
DIY Steps:
1.Submit a complete loss mitigation application (Form 710) to your servicer
2.Include hardship letter, income documentation, and bank statements
3.Complete a 3-month trial payment period at the modified amount before finalization
Short Sale (Fannie Mae HomeSaver)
Fannie Mae approves a sale for less than the outstanding balance and waives the deficiency. You may also receive up to $3,000 in relocation assistance. A short sale is significantly less damaging to credit than a foreclosure.
Who qualifies: Borrowers who owe more than the property is worth and cannot retain the home
DIY Steps:
1.Submit a short sale request to your servicer along with a hardship letter
2.List the property — your servicer sets a minimum net proceeds requirement
3.Submit each purchase offer to the servicer for Fannie Mae approval before accepting
Deed-in-Lieu of Foreclosure
You transfer the deed to your servicer in exchange for full release of the mortgage debt. Fannie Mae may also provide up to $3,000 in relocation assistance. Requires clear title — any junior liens or judgments must be resolved first.
Who qualifies: Borrowers who cannot sell after a 90+ day good-faith marketing effort
DIY Steps:
1.Request deed-in-lieu after documenting a failed 90-day marketing effort
2.Clear any subordinate liens or obtain written subordination agreements
3.Execute deed transfer and move-out agreement — confirm debt release in writing
Fannie Mae Mortgage Help — Frequently Asked Questions
How do I know if my mortgage is backed by Fannie Mae?
Use the Fannie Mae Loan Lookup tool at fanniemae.com/loanlookup. You only need your property address. This is free and takes under a minute. Knowing your loan is Fannie Mae-backed unlocks specific loss mitigation options only available to Fannie Mae borrowers.
What is a Fannie Mae Flex Modification?
The Fannie Mae Flex Modification is a standard loan modification that targets a 20% reduction in your monthly principal and interest payment. It works by extending your loan term up to 40 years, reducing your interest rate, and/or deferring a portion of the principal as a non-interest-bearing balloon balance.
What is a Fannie Mae payment deferral?
A payment deferral moves a limited number of past-due payments (typically up to 12 months) to the end of your loan as a non-interest-bearing balance due at maturity, payoff, or sale. Your regular monthly payment stays the same — you simply catch up at the end of the loan.
Can Fannie Mae help if I was denied by my servicer?
Yes. If your servicer denies a loss mitigation request, you have the right to appeal the decision. You can also call the Fannie Mae Mortgage Help Network at 1-800-2FANNIE (1-800-232-6643) for independent guidance. Servicers are required to follow Fannie Mae Servicing Guidelines — violations can be escalated.
How long does a Fannie Mae foreclosure take?
Fannie Mae requires servicers to wait until a borrower is at least 120 days delinquent before referring a loan to foreclosure attorneys. Timeline after referral varies by state (30–180+ days). Submitting a complete loss mitigation application before the referral date halts the foreclosure timeline during review.
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