Pros and Cons of the extended FHASecure Program

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The FHASecure program began September 5, 2007 allowing borrowers with non-FHA ARM mortgages to refinance their loan into an existing FHA program. It was expanded this July 14, 2008. Below are the some of the revisions and the pros and cons of the new program.

OLD

1) There is no limit on how far behind you can be on your mortgage or how many payments you’ve missed as long as you have sufficient equity .

2) Interest-Only fixed rate mortgages are NOT eligible.

3) The borrower must be delinquent on a non-FHA to ARM that has recently reset.

4) The borrower’s ARM mortgage must have already reset and must have been making payments on time for up to 6 months prior to reset or delinquent payments.

5) Non-FHA payment option ARMs are NOT eligible.

NEW

1) There is a maximum of 3 months delinquency in a 12 month period with at least 10% equity.

2) Interest-Only fixed rate mortgages ARE eligible as long as the borrower’s mortgage is current or delinquent due to payment shock of an interest rate increase.

3) The borrower does not have to be delinquent to qualify. FHA encourages borrowers to refinance before they fall behind on their mortgage.

4) The borrower does not have to be delinquent or have had their payment reset in order to qualify.

5) Non-FHA payment option ARMs ARE eligible.

Advantage of expanded FHASecure program

1) Extends help for more struggling homeowners (include those with non-FHA subprime ARMs) who are on the verge of foreclosure.

2) Increases options for delinquent homeowners who have had at least 3 delinquencies in the past 12 months.

3) It increases help for struggling homeowners without affecting taxpayers.

4) Extends help for homeowners who have mortgages that are more than their property is worth.

5) Charged premiums can give borrowers an incentive to improve their credit by charging them lower premiums depending on their credit status.

6) FHA insurance under program gives subprime borrowers access to lower rates, which can provide a lower mortgage payment.

Disadvantage of expanded FHASecure program

1) A large majority of struggling homeowners also have a lack of equity issue. FHASecure has a maximum limit. Programs states to have lender carry 2nd mortgage if this occurs. Overall payment may not help borrowers.

2) Taxpayers do not have to pay for this program. However, borrower does with mortgage insurance premiums that can range from .55 percent to 2.25 percent.

How Can I Take Advantage of FHA's FHASecure Program?

Sphere: Related Content First of all, the website http://www.hud.gov is VERY informative. If you have the patience, and I'm sure most people have or can give themselves at least one hour of research time to go into this site and find all the available programs out there.

For example, FHASecure is available for people who are at least two or three months late on their mortgage. With this program, borrowers are offered a chance to reinstate their mortgage situation and prevent foreclosure from taking place. Of course there are certain requirements, but it may be best to call HUD's customer service or their mortgage counselor to help you find the right program.

It really is best to go into this site before giving up and thinking there is no hope left. Borrowers, homeowners, citizens, and most individuals have rights. You'd be surprised about the different programs available that your local mortgage company won't tell you.

Alternative to Foreclosure

Sphere: Related Content There are alternatives to going into foreclosure. As a professional in the mortgage and real estate industries, I have witnessed many people go into depression thinking they were never going to get out of the financial slump they were in. I certainly don’t encourage anyone to go into foreclosure, of course, due to the unfortunate circumstances that the previous homeowner would have to go through.
First and foremost, borrowers and homeowners who feel they are having problems making monthly payments towards their debt should talk to their bank about any alternatives or suggestions they may have for the borrowers. Some lenders will not tolerate late payments and may issue the foreclosure process to begin as soon as possible, without giving the homeowner a chance to make handle the situation with the alternative options.
There are three options the borrower or homeowner may qualify for.
1. A repayment plan, which gives the borrower(s) the opportunity to make their monthly payment including a few extra to make up for the missed payments.
2. A forbearance agreement, which is an agreement between the lender and the borrower, which allows the borrower to make reduced payments, or none at all, until the mortgage is brought current.
3. A loan modification, which reduces the borrower's monthly mortgage payment through the re-amortization of the loan, extends the term of the loan, or reduces the interest rate.
In addition, a new law was just signed by the president that will implement a program, starting October 11, 2008, to help struggling homeowners. Therefore, if you are having problems paying some of your bills, you may want to consider contacting FHA to find out if you would qualify for their new program and if there was anything else they could do to help you. Also, some very knowledgeable mortgage professionals may be able to help you out with that matter as well.

What is going on with the housing market?

Sphere: Related Content The housing market offered many opportunities to homeowners and investors at the start of the 21st Century. As a result, competition among lenders and banking institutions grew. The surge of homeowners who supported the competitive nature of these institutions have either gone into foreclosure or are slowly getting there. Many homeowners feel their housing downfall is inevitable, while others do what they can to buy time.

What are the most popular choices? Loan modifications and short sales.

But how do you know you're getting the best deal? There are many experts out there, especially since 90% of those who are still in the industry are the wisest and have probably made the most money throughout the housing bubble. And of course, most have been in the industry for a very long time. Those are always the best pitch. I myself, tend to trust people who have been in a certain industry for a while. Unfortunately, I have realized through my years in the real estate and mortgage industries that it is not always the people who have been in the industry the longest that could get you the best deal. It is the people who have the highest ethical values. I feel that I have had the greatest success when I am certain that I had given my customer the best deal. I have worked in different areas of the industry and have tried to avoid sales due to the fact that I do not like to try to push anyone towards anything they would feel uncomfortable with. However, it was due to this reason that I have been able to build my clientele.

My partners and I have always believed that the best marketing tool we can have is good service and good ethical values. These two tools have brought us many good referrals and have introduced us to many wonderful people. Wonderful people that have allowed our connections and business to grow.

We help homeowneres and/or investors with credit repair, finding the right mortgage(s), loan modifications, short sales, real estate sales and investments, and even property management.

Please call us if you have any questions or inquiries or visit us at http://www.myloannegotiator.net. We are always glad to help.

(909) 753-5277.