Wow sounds great but what does that mean?
On March 26, 2010, the Department of Housing and Urban Development (HUD) and the Department of the Treasury (Treasury) announced enhancements to the existing Making Home Affordable Program (MHA) and Federal Housing Administration (FHA) refinance program that will give a greater number of responsible borrowers an opportunity to remain in their homes. These
enhancements are designed to maintain homeownership by providing borrowers, who owe more on their mortgage than the value of their home, opportunities to refinance into an affordable FHA loan. This opportunity allows borrowers who are current on their mortgage to qualify for an FHA refinance loan provided that the lender or investor writes off the unpaid principal balance of the original first lien mortgage by at least 10 percent.
This Mortgagee Letter provides additional guidance for lenders regarding the requirements and administration of these enhancements to FHA’s refinance program. These enhancements are effective for loans with case numbers issued on or after September 7, 2010, which are closed on or
before December 31, 2012.
So like anything else, there's specific criteria and you can do well by making a copy of the information in the link below, read it thoroughly, highlight the important criteria to determine elegibility and start calling your Lender(s) on your lunch hour to inquire if you qualify. If things start to look rosy, you can talk to your Mortgage Broker or Banker who places FHA loans or even to your existing lender to pursue this endeavor, if they place Government loans (FHA).
So FHA is stepping to the plate - Great!, but if you don't qualify for this loan, you may still qualify for H.A.R.P. the Home Affordable Refinance Program. Your existing Lender will be the party to investigate this other alternative with.
The full story is available at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-23ml.pdf
Check ShortSaleNewsletter.com for other options or log onto ShortSaleSully.com and click on Blogs icon .... Keep the faith!
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