Hello there,
We wanted to update you on a recent success of ours for a family in our client base. The FHA Secure has been put into place to allow people who have gotten behind on their mortgages as a direct result of an adjustment in their rate that made their payment unaffordable. It is not an easy loan to get approved. I have talked to and coached several loan officers with our mortgage bank on how to get their FHA Secure loans approved. My branch remains the consistent leader in these difficult loans.
This family had an adjustable rate mortgage that adjusted and caused them to get behind on their payments. They had even gone so far to attempt and complete a loan modification. The problem with the loan modification is that it doesn't fix their rate permanently, but it remains an adjustable rate mortgage. Your rate and payment are lowered, so temporarily you get a band-aid for a broken leg. Many lenders don't even allow their clients to modify their loans.
So the family lives in this house and the husband who even had health issues and isn't supposed to work, has gone back to work. Every penny goes to their payment which went as high as $2,500 per month for a $235,000 home loan. That is way too high. The FHA Secure will drop their payment to just over $1,800 and put them into an FHA mortgage. They will start with a clean slate on mortgage payments and be eligible to qualify for a lower normal FHA refinance here soon and lower their payment even more.
The challenges we faced were many in numbers. As an example we needed a co-borrower to be added to the loan. Mind you the co-borrower has to live in the house to be eligible for an FHA Secure. The co-borrower doesn't use his credit, so we had to get verification on alternative credit to qualify him for the mortgage. This is just one obstacle we overcame on this loan.
Our ability to get this loan approved and closed comes from a deep understanding of FHA underwriting guidelines, compassion for our clients, and desire to prove underwriter's wrong at times.
We have this loan approved after a long path of some thorns and frustrations to the borrower. You see in a typical refinance you are used to qualifying and closing on it , in about 3 weeks. With an FHA Secure you are overcoming normal underwriting guidelines, with an abnormal situation. You have to document and supply the necessary paperwork to support your case as to how the adjustment in payment caused you to get behind. You also need a strong FHA lender who will know how to get your loan packaged and present to an underwriter why your loan should be approved.
If you have a situation where your loan was on time, and as a result of your adjustment, your payment became too high to afford, you may be a candidate for an FHA Secure. Make sure you call me at 303-779-0591 ext 101 and tell me your situation.
Ray~
DENVER - Distressed homeowners in Colorado do not have to wait for the new housing law to take effect on October 1st in order to be eligible for mortgage relief.HUD's Federal Housing Administration (FHA) continues to provide troubled homeowners with access to safe, affordable mortgage products.
"HUD understands that for many families, time is of the essence. These families should not wait to obtain help when it may already be available," said HUD Secretary Steve Preston. "Delay could only result in the loss of their home. We have already helped hundreds of thousands of families nationwide, and we believe there are more Colorado families that can currently benefit from our refinancing product."
Immediate assistance is available by calling 1 (800) CALL-FHA or visiting www.HUD.gov. There are 40 HUD-approved housing counseling agencies standing by to help homeowners in Colorado. In addition, homeowners may also call the HOPE Now alliance at: 1 (888) HOPE-NOW, or the Colorado Foreclosure HOTLINE at 1 (877) 601-HOPE.
In July, the Bush Administration expanded its flagship mortgage insurance program to assist more homeowners who are struggling to keep up with their high-cost subprime adjustable rate mortgages. HUD's FHA expanded its FHASecure refinancing product to insure more mortgages for borrowers who were late on a few payments and/or received a voluntary mortgage principal write-down from their lender.
With this expansion, FHA has helped more than 320,000 families since September 2007 refinance into affordable mortgages and is on pace to help 500,000 American families by the end of this year.
In August 2007, FHA initially modified its refinancing program to help creditworthy homeowners who missed their mortgage payments as a result of the payment shock associated with interest rate resets. FHASecure has further expanded its eligibility criteria to help homeowners who have gone into default as a result of temporary economic setbacks.FHA's eligibility will now help the following categories of troubled homeowners:
FHASecure can help additional borrowers in COLORADO and across the nation access a more viable refinancing option and will offer lenders an alternative to foreclosing on these individuals. Lenders can already voluntarily write down the outstanding subprime mortgage principal balances to a 97 percent or 90 percent LTV ratio depending on the borrowers' circumstances. FHA will also encourage lenders to make other arrangements, such as subordinate financing, to "fill the gap" between the existing loan balances and the FHA-insurable loan amount. The refinanced loan amount backed by the FHA would be based upon a new appraisal, performed by an FHA-approved appraiser.
Home | Blog
Copyright © 2010 Summit Home Mortgage, IncPortions Copyright © 2010 a la mode, inc.Another XSite by a la mode, inc. | Terms of Use| Site Map
