If your mortgage is under an FHA loan, there may be FHA loan modification options open to you. Many homeowners who are uninformed but on the road to foreclosure fear that FHA home loans are ineligible for modification, but under the Housing and Economic Recovery Act passed in 2008, FHA lenders were given the permission and funding to accommodate loan modification.
FHA loan modification stretches the mortgage through up to a thirty year period with a lower, fixed interest rate to make mortgage refinancing possible for millions of homeowners to keep their homes. In order to be eligible for an FHA loan modification, under the Streamlined Modification Program, a homeowner must:
- Be at least three or more months behind on their mortgage payments.
- Not be in bankruptcy.
- Reside in the residence they want the FHA loan modification to cover.
Also, the mortgage must have been taken out prior to January 1, 2008 and the current value of the property must be no less than 90% the initial value.
An FHA loan modification entails: extending the loan for as long as appropriate with the new interest rate, reducing the interest rate to a minimum of 3 percent (if appropriate), and a balloon payment when the loan is paid mortgage refinancing matures, or goes through refinancing.
Loan modification seems to be the answer for millions of homeowners who are on the verge of losing their homes to foreclosure, whether their mortgages are through FHA or other lenders. However, as it stands now homeowners under FHA loans are finding it exceedingly difficult to get loan modifications and steps are being taken to make it easier for everyone to receive loan modification assistance.
Because the FHA loan modification standards under the Housing and Economic Recovery Act are ridiculously strict, the Obama Administration is currently pushing to allow FHA loans to meet other loans' standards under the Home Affordable Modification Program. Many homeowners, under FHA mortgages or otherwise, are living on property which has fallen far below 90 percent of initial purchase value. There are even properties which have fallen to or below 50 percent of their previous value -- quite a far cry from 90 percent.
The FHA loan modification program under the Housing and Economic Recovery Act has fallen flat on its face since its launch in October, helping only handfuls of families across the country. No progress towards recovery for the housing market can be made unless loan modification is made more accessible for those who have property covered by FHA loans.
If you are a homeowner covered by a FHA home loan and your property value has plummeted like the rest of America's, hold on tight. It's going to be a long and bumpy ride for you to recovery
For more information about home loan modifications, visit the #1 loans modification resource on the net: http://HomeLoanModifications101.com
ไม่มีความคิดเห็น:
แสดงความคิดเห็น