Do You Sincerely Want to Avoid Foreclosure?
Posted By admin on November 5, 2009
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There is renewed hope for homeowners in default on their mortgage. The program started October 1, 2008 and will end September 30, 2011. The program is called Hope for Homeowners Program.
The homeowner can get a 30 year fixed rate mortgage from the Federal Housing Administration (FHA). The program is designed to refinance homeowners out of high interest rate loans and possible adjustable rate loans to a fixed affordable rate loan.
The program is voluntary, and both the homeowner and the lender must agree to participate in the program.
To be eligible, the homeowner must meet these guidelines:
- the home must be your primary residence
- you can not have ownership interest in another home such as, a second home
- your mortgage was originated on or before January 1, 2008
- you have made at least six on time payments
- you are not able to pay your existing mortgage without assistance
- your monthly payment is more than 31 percent of our gross monthly income
- you have not been convicted of fraud
To participate in the program, you must contact your lender.
The new loan will be no more than 90% of the appraised value of your home. As a results of this, the lender will be required to write down your loan to that amount.
The new mortgage will replace your current mortgage if it is approved by the lender. In other words, you will not owe anything on the original mortgage. This new mortgage will replace it. You will allso have to share both the equity and any future appreciation for five years. In essence, you are not eligible to carry a second mortgage for five years after initiation of the Hope for Homeowners Program. You will have to pay 1.5% annual mortgage insurance premium and 3% mortgage insurance premium up front. By the way, the 1.5% annual mortgage insurance premium is part of your monthly mortgage payment.
You will be paying closing for the loand to include the 3% mortgage insurance premium, the 10% down payment, title insurance, etc.
You can prevent foreclosure by contacting your lender to find out what your options are. Remember to ask for the loss mitigation department.
Originally posted 2009-06-09 15:22:35. Republished by Blog Post Promoter
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