Any increase in mortgage payments is sure to invoke nothing less than pure horror for most homeowners. There are at least about 2.2 million people in America who currently face the possibility of seeing their mortgage costs go north, especially if they own an adjustable-rate mortgage which is due for a correction this year. For some of these affected individual homeowners, foreclosure is a distinct possibility. If you expect your mortgage payments to increase because of an Adjustable-rate Mortgage or if you feel that you might be staring straight into a foreclosure scenario, A lower mortgage payment would be such a relief now, don’t you think?
The FHA (Federal Housing Administration) has instituted a program that you could use to bail yourself out. It is now possible through a brand new mortgage refinance program known as ‘FHA Secure” provides homeowners a chance to refinance their loans or mortgages whose interest seems to have gone up thanks to the adjustable-rate mortgage and hence lower their monthly out-pay.
The program, floated by the Bush administration, seeks to help beleaguered home owners suffering the brunt of sub-prime crisis. These loans provide refinance of more than a whopping 95% of the property’s apprised value and the money is loaned out as an FHA-insured mortgage. The best part about the program is not only will the lenders not hold anything against you for late or non-payment incidences but also provide with you additional help like extra credit or provide add-on loans which to allow you to pay up the difference in the amount of what you owe and the actual value of the property.
You’ll have to be eligible to utilize the benefits of this program, though. The FHA-Secure is made available only if you have sound credit. The strict rule is that you must be due to pay up the current due in the month you are considering to sign-up for the program. The only exception to defaulting payments is when the default is to the change in the interest rates and a resultant sudden increase in due mortgage payments.
Also, the FHA-Secure is limited to homeowners currently living in the property they are paying the mortgage payments for. So, if you introspect, the FHA secure is more for the individual homeowner and not really for the investor. Another interesting fact about FHA secure is that it doesn’t really give out loans to the homeowners but only insures the mortgages lent out by FHA approved lenders.
If you are already slapped by a foreclosure situation, you may still use the FHA secure.The success rate depends on three critical factors: the property value, the outstanding mortgage amount and whether your lender is wiling to grant you an additional mortgage. Do note that if you aren’t qualified to apply for a home loan, you wouldn’t be able to apply for FHA secure or any other FHA schemes. There are certainly other options though and it always helps if you discuss it out with your lenders and acquaint yourself with information from reliable sources, such as The FHA Website.
The Stopforeclosure Blog, needless to say brings in information from trustworthy sources and splices it all digestible chunks for your ease.