Beginning August 15, 2009, the Federal Housing administration will be eligible for Obama’s home loan modification program, the Making Home Affordable Modification program. Recently, the Obama’s loan modification program has been changed to help even more homeowners refinance although they owe more than their homes are worth. If you are a qualified FHA-insured borrower, you will be able to modify your mortgage loan and receive a permanent reduction in monthly payment. To see if you qualify, pick up the phone and call +1-888-297-8685.
The program was announced on June 30, and it is expected to be implemented by Aug 15th. Borrowers will be able to receive a reduced monthly payment through the use of “partial claim, which defers the repayment of mortgage principal through an interest-free subordinate mortgage that is not due until the first mortgage is paid off.” But this “partial claim” will eventually have to be repaid if the owner of the house sells the home, refinance the mortgage or pay off the first mortgage.
In the past, FHA used the partial claim that allows lenders to advance funds on behalf of a borrower in order to reinstate a loan that was up to 12 months delinquent. This time, the partial claim is now used to allow HUD bring the borrower’s payment down to an affordable level. This will be done through 3 steps:
1. By bringing the mortgage current
2. Buying down the loan by up to 30% of the unpaid principle
3. By deferring these amounts in a partial claim.
The Secretary of the Department of Housing and Urban Development, Shaun Donovan, explained that starting Aug 15th, tens of thousands of FHA borrowers will be able to modify their mortgages in the same manner as so many others who are taking advantage of the administration’s Making Home Affordable program. The HUD had announced earlier this month that the program had been expanded to borrowers who were up to 125% in debt. These two actions combined were designed to help even more homeowners to keep their home.
Every mortgage loan companies that modifies the FHA loans under this program will receive an incentive by the FHA for each loan modified. This is hoped to further Obama’s program to stabilize the housing market.
Popularity: 1% [?]
Add A Comment