Saturday, September 27, 2008

Short Refinances with FHA

The housing bill and hope for homeowners has made much to do about the FHA short refinance. The FHA short refinance should help borrowers to renegotiate the mortgage payoff to a lower amount that can be refinanced through the FHA loan program. Let's take a look at who is eligible:

1. The individual must be the Homeowner who actually lives in the house, and not be an investor. In other words, no rental properties are eligible to receive a new mortgage.

2. Homeowners must certify that they have not intentionally defaulted.

3. Homeowners must have a mortgage debt of more than 31% of their monthly incomes as of March 1, 2008.

4. Homeowners incomes must be verified.

5. The troubled loan must have been no later than January 1, 2008.

Well as you can see from the above, many borrowers should qualify for the fha short refinance. It should be noted that the program is voluntary and in that regard there may not be as much hope for the hope for homeowners program when the fha short refinance is voluntary.

Stay tuned for more information on fha short refinances through the Hope For Homeowners program.

Wednesday, September 24, 2008

FHA Short Refinance

The FHA short refinance has been in the news lately. The Housing Bill has sparked more discussion on the FHA refinance short option. The fact is that lenders have a loss severity level that is a function of market values and delinquency level. In many cases, the highest net present value for a mortgage refinance is realized when the lender accepts a short payoff to settle the mortgage debt.

The result can be called an FHA short refinance.

Wednesday, September 17, 2008

Commenting on Hope For Homeowners Act

THe much anticpated Hope For Homewowners Act will become an FHA foreclosure refinance reality soon. The text of the FHA Housing Bill called Hope For Homeonwers can be read here. It remains to be seen whether the servcing lener will chose a loan modification over the new FHA foreclosure refinance.

We will be posting more on FHA's new Foreclosure avoidance refinance and the general guidelines for FHA Hope Fore Homeowners can be viewed at your liesure.

FHA Hope For Homeowners will hopefully provide some hope for homeownership.