The Hope For Homeowners program is designed to help you refinance your house for less than what you owe on it. It does this by getting your current lender to forgive some of the mortgage amount. How is this possible? Read about it in this article!
How does this program help me?
This is actually an FHA loan product and works much like a "short" refinance. This program will allow you to refinance, no matter what kind of loan you currently have, into a new, fixed rate mortgage. It will allow a refinance up to 96.5% of your home's current appraised value. In addition, the loan term can be extended out to 40 years. The most important feature is that your current lender must agree to forgive any debt that is above the 96.5% loan amount for this program to work. Why would you lender agree to this? Because this program might be less costly to your lender than a full foreclosure would be. Be aware though, this loan has a "shared equity" arrangement. That means if you sell the house in the future FHA has rights to a piece of the profit (if any); it is called an "Exit Premium".
Who should I contact?
Any FHA approved lender can do the program. Use HUD's lender look-up to find a local FHA approved lender (HUD manages all FHA products). When interviewing lenders be sure to ask if they are familiar with the Hope for Homeowners program. If the answer is "no", keep looking until you find a lender that is.
What should I expect?
This loan is a little more complicated than a regular refinance. It could take 60 to 90 days depending on how busy the company is that you choose to do your loan. The company that handles this for you will have to liaison with your current lender (trying to get them to forgive part of the current mortgage debt so the refinance can take place) and that is where most of the delays will occur.
Be prepared by having your personal financial documents ready and ask lot's of questions! This program does have some serious stipulations such as: Future shared equity with the government and expensive mortgage insurance.
The Home Affordable Modification Program - the Best Foreclosure Prevention Program Available
The Home Affordable Modification Program (H.A.M.P.) is by far the best foreclosure prevention program available to homeowners. The H.A.M.P. is more likely to lower your house payment than any other program out there. However, there are several things you need to know about this program.
The Fannie Mae Payment Reduction Plan
Have you heard about the new Fannie Mae Payment Reduction Plan? It is the latest payment forbearance program to come out for people having trouble making their house payment. Learn what you need to know in this article.
How The Obama Administration Will Kill the Housing Recovery in 5 Easy Steps.
This series of articles will focus on the incredible blunders the Obama Administration is making regarding housing. It is my prediction that we are about to fall off a second cliff with regards to foreclosures and the downward spiral of home values. My hope is that by highlighting these missteps they can be avoided. Time will tell if I am right or if I am an alarmist.
