Underwater Mortgage Help – FHA Short Refinance Program

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// Homeowners who have seen their home’s value drop over the past months may have options in dealing with their underwater mortgage through a new FHA short refinance program. Homeowners who might qualify for this program could see a principal reduction on their underwater mortgage and have the opportunity to refinance for an FHA home loan, which could bring a more affordable mortgage interest rate and lower monthly mortgage payment.

Many homeowners who own more on their home than their home is actually worth are obviously in a very difficult financial situation, especially in cases where a homeowner’s monthly mortgage obligation has become problematic due to the loss in property value. Interest rates on home loans are quite low at the present time but underwater homeowners have been unable to refinance for a more affordable mortgage rate and possible mortgage payment since they have negative equity in their home.

Yet, it’s hoped that this new Federal Housing Administration program will bring more options to homeowners in an underwater mortgage situation so that they may make their home loan payment more affordable and avoid foreclosure. However, there have been some concerns over whether this program will be successful due to the fact that mortgage servicers will be required to offer a principal reduction before homeowners may qualify.

Mortgage servicers have been reluctant to offer principal reductions in some cases and since another qualification of this program is that a homeowner must be current on their home loan payments, it’s believed that mortgage servicers may not offer principal reductions in cases where homeowners can still meet their mortgage payment requirements. However, homeowners who may be struggling to stay current on their home loan payments may find assistance through this short refinance opportunity as long as their mortgage servicer will work with them to provide more affordable mortgage payment options.

Underwater Mortgage – Strategic Mortgage Defaults

It’s amazing to me that people are so shocked when someone says they are no longer going to make payments on their home that has a underwater mortgage.  Look at what they are saying, they simply see that their payments are going towards a dead asset or in this case their mortgage.  They just don’t see the point as they are the glass half empty type of people.  You know these folks everything is a negative thing ahead of the potential positive outcome.

It becomes an ethical question at this point, make your house payments or stop paying and walk away.

If you have been here before I have addressed the common response of walking away from your home as something that should never happen.  I truly believe that you need to fight to find solutions before resorting to the easiest course of action.  It’s just easy to walk away and it’s HARD to stay in and fight with your bank or lender to make things work “The Right Way”

“The Right Way” is fighting for a desired outcome and not taking the path well traveled.

1. Attempt a loan modification –  This is difficult to accomplish and will often require duplicate work on your end just to have them look at your paperwork.

2. Attempt a Short Sale – this is selling your home for less than the loan amount.  It is very common these day and there are some very good Short Sales Agents out there so just go find one you like and make it work.

3. Try a Short Refinance – This is not easy but it is possible to refinance your home for less than you owe.  You need to demonstrate a hardship and if done correctly you can get your balance reduced and you remain in your home.

4.  Sell and rent back – this is more complicated but can be done if you absolutely want to stay in the home you currently own.  You also might get lucky and be able to buy the house back for less shortly after you short sell it to the investor.

Many times people don’t work through all their options because it is just TOO HARD!  There is a whole lot of emotional stress when it comes to dealing with your mortgage.  I guess anytime you deal with finances it seems to be difficult.  Just know you have options and that figuring out those options is not that difficult.

SHORT REFINANCING HELP

Negative Equity Mortgage – HAMP Program

 

Negative Equity Mortgage Solutions – HAMP Program

Shellie Hatfield and I go into great detail on how to properly handle a Negative Equtiy Mortgage using the HAMP program.  We cover the criteria in great detail and even dive in to the Streamline refi program.

HAMP program visite by On The Money Radio Show.

TG-421: Obama administration Kicks off Mortgage Modification …

November 30, 2009. TG-421. Obama administration Kicks off Mortgage Modification Conversion Drive. WASHINGTON – The U.S. Department of the Treasury and Department of Housing and Urban Development (HUD) today kick off a nationwide …

Obama Administration To Admit Failure Of Mortgage Modification …

Throwing good after bad is not a practice that generates long term success and prosperity. In fact, the unintended consequences and costs of dysfunctional.

Status of Efforts
• 63 servicers had signed participation agreements for the first-lien modification program;
• More than 1.3 million solicitation letters for HAMP loan modifications to borrowers;
• More than 328,000 HAMP trial modification offers to borrowers;
• More than 209,000 HAMP trial modifications had started;

. . . and of the 209,000 mortgage modifications (.3% of total homeowners) started in the country, how are we doing?

• 1,080 borrowers had successfully completed the trial period and received HAMP modifications.

 

HAMP – Another Federal Foreclosure Bailout Plan

http://www.qualityfreearticles.com In 2009, the Congress and the Obama administration revealed their newest plan to help families save their homes from foreclosure by encouraging mortgage modifications. This plan, called the Home Affordable Modification Program (HAMP) was designed to create broad guidelines for the mortgage industry on modifying loans, as well as provide incentives to lenders and servicers to offer modifications. … hamp “foreclosure bailout plan” …
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