In an effort to try and encourage loan servicers to work with borrowers who are trying to modify their loan payments, Freddie Mac has set up a rewards program for servicers who successfully renegotiate Freddie Mac-owned loans.
Starting today, Freddie is paying servicers the following:
$500 for each repayment plan;
$800 for each loan modification; and
$2,200 for each short sale.
Freddie also will reimburse a servicer the advertising costs involved in telling borrowers about these options. If the advertising results in the borrower contacting the servicer, Freddie will pay the servicers up to $15 per mortgage for leaving a door hanger, and up to $50 per mortgage for knocking on a door.
It's not much, but it's something. And in these tough times, lenders are looking to make every penny they can. So maybe this will be just the incentive servicers need in order to make them more amenable to working with homeowners.