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Skip Murphy: Hope for homeownership
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.
http://www.redhothomes.info/Skipsblog/wordpress/
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Hello. My husband and I have been hanging on for 7 months, paying over $1000.00 more per month on our adjusted mortgage hoping this bill will get started. However, after all of this time, it seems nobody knows much about how to get this taken care of. All of the lenders we spoke to stated they did not have the proper forms from FHA/Hud, did not know where to send them if they did and I am told by many lenders that nothing will get started til march of next year or so, if anything happens at all. We have lost hope in this hope for home ownership. We have been living off our credit cards and can no longer incur this kind of debt any longer. We have pleaded with or lender weekly, for the last 7 months to negotiate, to no avail. Our lender servicing company just laughs at me when I call them. Has anyone been refinanced through this program yet? I don’t believe this bill will really come to fruition and I now regret spending thousands upon thousands of dollars hanging on and lowering my credit score due to the increased debt, just to save our home for nothing…with no end in sight. Any suggestions for us at this point? We both had great credit scores and always paid on time. Now we are 2 months behind and I am so furious!
Laura, I’m so sorry your family is hanging on by its fingernails. It is maddening to wait so long with no help in sight. I’m hoping your note gets the attention of someone who can help you. Keep asking around. Don’t give up. I think help is just around the corner. Fingers crossed.