The most recent bail-out bill news is overshadowing the start-up of a federal program to help homeowners renegotiate their loans. This information may be helpful to you, or somebody you know, so spread the word.
If you recall, the president signed a mortgage assistance package a while ago as part of the economic stimulus package. The program is called Hope for Homeownership, and began business Oct. 1, 2008. This will provide incentives for banks to provide a work-out for a loan rather than foreclose. For homeowners to qualify:
* Their mortgage must have originated on or before Jan. 1, 2008;
* Their mortgage debt-to-income must be at least 31 percent;
* They cannot afford their current loan;
* They did not intentionally miss mortgage payments; and
* They do not own second homes.
Features of FHA-insured loans under the new program include:
* 30-year, fixed rate mortgage;
* Maximum 90 percent loan-to-value ratio;
* No prepayment penalties;
* $550,440 maximum mortgage amount;
* Extinguishment of any subordinate liens; and
* New home appraisals from FHA-approved appraisers.
Take a look at the HUD website:
http://www.hud.gov/fha/home080730.cfm
Hopefully this information will help you or somebody you know. Beware of scammer “home retention” services that may play on similarities to the government program. Many are illegitimate. Here’s contact info:
1. Contact a local, HUD-approved housing counseling agency at HUD.gov;
2. Contact the HOPE NOW Alliance at (888) 995-HOPE; or
3. Call FHA at (800) CALL-FHA.
I hope this helps somebody!
Skip Murphy and his daughter Erin are Realtors with Coldwell Banker in Redding, helping people buy and sell real estate. Which occasionally means working with foreclosures.
