1. The FHA Modernization Act of 2007 was recently passed today
by the Senate authorizes lenders to help borrowers who are in default.
a. lower down payments
b. Allow FHA to insure bigger loans
3. Allow FHA more pricing flexibility
Increased loan limits would also help people living in high-cost areas;
current FHA limits make the program unusable for expensive areas.
2.
FHASecure: FHASecure is designed for families who are good
borrowers but were steered into high-cost loans with teaser rates. A
HUD program program designed to provide borrowers with strong credit
histories with the ability to qualify and secure new mortgages should
conditions otherwise prevent it. In the first 4 months of the program,
FHASecure will have helped 53,000 families and received more than
127,000 refinance applications from families whose loans are current or
past due. They can be reached at 1-800-CALL-FHA
To qualify for FHASecure, eligible homeowners must meet the following five criteria:
1. A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset;
2. Interest rates must have or will reset between June 2005 and December 2008;
3. Three percent cash or equity in the home;
4. A sustained history of employment; and
5. Sufficient income to make the mortgage payment.
3. Hope Now
An alliance between counselors, servicers, investors, and other
mortgage market participants to help them stay in their homes and
create a coordinated plan to reach and help as many homeowners as
possible. The approach here is to help people in distress by providing
information and alternatives to the foreclosure process before the
reset period. This is preventative medicine and a work in progress.
Mortgage Company Private Initiatives: Mortgage companies a fast-track
program that would freeze the interest rate at the introductory rate
for five years for existing ARM's. According to the Wall Street Journal
some borrowers who don't qualify for fast-track may be able to
refinance into a new mortgage, with a good credit score and equity in
their home. Those that wont qualify for the fast track and do not get
help on an individual basis may be able to refinance into Federal
Housing Administration loans or other mortgage programs.
Other Helpful Links for Counseling Information:
NeighborWorks America:
Homeownership Preservation Foundation: http://www.995hope.org/
Through our 888-995-HOPE hotline, the Homeownership Preservation
Foundation has a single mission: to help homeowners avoid foreclosure.
We are an independent nonprofit that provides HUD-approved counselors
dedicated to helping homeowners. MyMoneyManagement:
Thanks for Reading
Howard Bell
www.yourpropertypath.com
