Baxter Wins Modification Offer, But Still Not Enough
After our spirited demo last month at the Chicago offices of Fannie Mae (see YouTube link), Baxter Jones has won an important concession: Fannie has offered a post-foreclosure mortgage modification on the home in Jackson, Michigan, where Baxter had planned to retire after a disabling car accident left him wheel-chair bound. Baxter Jones vs. Fannie Mae – YouTube
That’s the good news. The bad news is that Fannie is demanding a “standard” interest rate of 4.65% and a monthly payment of $1,200— far more than Baxter can afford on disability income of $1,800 a month. Fannie has refused to reduce mortgage principal or sell the home back to an allied investor who offered to buy the property at market value.
WE NEED TO CALL FANNIE MAE AND DEMAND THEY DO BETTER!
Fannie has the power to do so. A modification subsidized by the federal government’s Home Affordable Modification Program would charge interest of only 2% and require monthly payments of about $700. Instead of reducing principal, it would be collected over a longer term. When he first went into default, Baxter should have been considered for a similar modification under a special forbearance program for people with disabilities, but Wells Fargo, the bank servicing the mortgage for Fannie Mae, foreclosed even though Mr. Jones qualified.
We have moved the struggle forward to save Baxter’s home, but we need to pressure Fannie Mae to do what Wells Fargo should have done in the first place: provide Baxter with a sustainable mortgage modification that matches the HAMP guidelines.
Call Fannie Mae’s regional office in Chicago, 312-368-6200, or call Chris Daugherty, Escalation Specialist, 972-656-8600
Baxter Jones’ loan number is 025 301 6042 . His address is 8789 Rexford Rd., Jackson, Michigan
Tell Fannie to stop the eviction of S. Baxter Jones and provide a low-interest mortgage modification with monthly payments at no more than a third of Baxter’s gross income, matching the HAMP guidelines.
For more information, go to detroitevictiondefense.org