Stop Foreclosure By Utilizing A New Government Program
If you are currently on the adjustable-rate plan for your mortgage loan, and finding it hard to adapt with the ballooning interest rates, you are not alone in this struggle. As the depreciation of the economy caused many people to lose their jobs and experience pay cuts, foreclosure trouble surfaced in more than a few homes in the United States today. Wondering how to stop home foreclosure effectively? One sure proof method is by accepting the government’s help through the FHA Secure Refinance Program from the Federal Housing Administration (FHA). This is the government’s direct response to help those facing foreclosure to make their mortgage payments more manageable.
Through the ARM program, many homeowners have been conned into accepting previously low interest rates, falling into false security, and now paying the price for it. The FHA Secure Program helps to transform those mortgage loans into fixed-rate FHA loans that would reduce your monthly payments considerably. If you are eligible for this program, a conventional lender would offer you their services with a fixed-interest rate plan. Nevertheless the only difference here is that these loans are insured by FHA, and you would also be using a FHA-approved lender.
Having your loan insured by the government itself is a dream come true in terms of security, and without a doubt less risk is involved. Even those with bad credit scores qualify for this program, especially if you are showing improvements in your credit rating and are making efforts to better it further. Even if your credit score is below 500, you would still be able to qualify for this plan, as the government is serious about helping homeowners stop foreclosure now as much as they can.
FHA’s Secure Refinance Program may be the answer for you if you have tried to ward off foreclosure issues without success with other possible methods. FHA prefers to focus on the overall credit account of the homeowner instead of the credit score itself to help homeowners further. To qualify, you must currently have a non-FHA ARM mortgage loan, and the interest rate within your mortgage loan must have been changed between June 2005 and December 2009. And you must also have a clean record of payment prior to the increase of interest rate, this would be something that FHA would definitely like to see in your credit account. Other requirements include a minimum of 3% of cash/ equity in the property, as well as a consistent history of employment that would guarantee that you would be able to make the payment in proper.
This method is a brilliant one if you are looking to get away from the troublesome ARM plan that you are on now, and it has worked for hundreds out there. Now is your chance!
On June 12, 2008, the finalists competing for the 2008 Innovations in American Government Awards presented before the National Selection Committee, chaired by David Gergen. In this video, finalists include the following government programs: * Intelligence Community Civilian Joint Duty Program from the Office of the Director of National Intelligence * Learn and Earn, North Carolina * Global Maritime Domain Awareness, US Department of Transportation * Fresh Food Financing Initiative, Pennsylvania * Youth Leadership Advisory Team, Maine
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Stop Foreclosure Fast By Using Government Programs That Are Meant To Stop Foreclosure
Are you struck in the economic recession and finding it difficult to pay your monthly credit payments? Most of us are facing the same problem as we are suffering from salary cut downs and economic crisis and, as a result of all this we are unable to pay our monthly mortgage payments. As a consequence of all this we just stand in the front of the foreclosure with no solution left with us. But we should not fumble and get struck in fear because government of United States is well aware of our dilemma and is proving help to us by different means to cope up with this situation. If one is looking forward towards government to help them to stop foreclosure fast then one have few options with them.
United States department of housing and urban development is helping in stopping home foreclosure by offering several government based programs. These programs include extended time period to pay back, increase in interest rate for the lending agency, even financial support to those who have lost their jobs in the recent economic recession. President of United States barrack Osama has also launched plans to help those who are facing foreclosure and those plans include loan modification, to make it easier for the people to pay off their debts who are facing such problems. Those who are facing the problem of foreclosure should take the advantage of these plans because these plan help in saving their homes easily.
There is one more organization named Federal Housing Administration that helps people to avoid foreclosure and methods to save owners from getting into the problem of foreclosure and losing their homes. It also helps home owners who are suffering because of high interest rates, despite of having good credit reports. This plan helps home owners by refinancing their properties at lower rates of interest which also helps them not to get indulge into situation of foreclosure until their finances get in to place. Another appreciable project by government helps home owners to delay foreclosure by working on refinancing their properties and on the repayment plans.
Before getting into any of the foreclosure avoidance program check whether it is legal or not that is it is authorized by government or not by referring to department of housing and urban development or federal housing administration so that you may not get indulged into any of the hoaxes. Try to stop home foreclosure with the help of government and you could get back your home within a short duration without facing much financial problems.
Stop Foreclosure by Using a New Government Program
If your adjustable rate has pushed your mortgage payment to unaffordable levels, you may have some relief.
In response to the crisis of people facing default on their home mortgages because their adjustable rate mortgages are no longer affordable, the Federal Housing Administration is coming out with the FHA Secure Refinance Program.
The new FHA Secure program would help home owners who have fallen behind on their home mortgage and are possibly facing foreclosure because of their new higher monthly payments. The new program would allow the delinquent home owners to refinance their Adjustable Rate Mortgages into a fixed rate FHA loan.
The FHA Secure program is intended to help homeowners that may have been tricked into expensive Adjustable Rate Mortgages with teaser interest rates. If you qualify for an FHA mortgage your loan will be funded by a conventional mortgage lender.
Remember, FHA mortgage loans are insured by the Federal Housing Administration. The FHA does not lend money; they simply insure your debt with an approved FHA lender.
Because your mortgage is insured against default by the government, FHA loans offer significantly less risk for lenders, allowing homeowners, even those with poor credit, to qualify for lower mortgage rates.
The FHA will accept homeowners with blemished credit… especially if you are working on improving your finances and can document your current situation. In the past, the FHA has not required borrowers to have a minimum credit score. Instead, they have focused on one’s overall credit history.
Therefore, it may be possible to qualify even though you may have a low credit score, perhaps 500 (or less).
If you are a homeowner with tarnished credit and are concerned that the current “mortgage crisis” will prevent you from refinancing before your lender begins adjusting your interest rate and payment amount, FHA backed mortgage refinancing could be your answer.
Apparently, the FHA’s focus will remain on looking to the good credit profile of applicants rather than a credit score, And, until now, the FHA has not permitted delinquent borrowers to qualify for their loan program.
To qualify, you must show….
-That your loan is a non-FHA ARM.
-A history of on-time mortgage payments “prior” to the borrower’s ARM loan resetting to the higher rate.
-The Arm loan interest rate must have either reset or be scheduled to reset between June 2005 and December 2009.
-Mortgage late payments are allowed after the reset date if they are directly related to your higher loan payment. In addition, if you are in a mortgage payment plan because of late payments and there is sufficient equity in the home, the late amounts can be rolled into the new loan.
-A minimum of 3% cash or equity in the home.
-A sustained history of employment.
-Sufficient income to make the new mortgage payment.
While the new program will help those borrowers who qualify save their homes, it is obviously not a free ride. It is designed for homeowner’s who just need a little assistance in order to get out from underneath expensive ARM interest rates.
The FHA will not insure interest-only or Pay Option ARMs; and will not help home owners who have properties that have depreciated in value and are now worth less then the current mortgage balance.
You must use an FHA approved lender to see if you qualify for the FHA Secure Refinance Program. For FHA lenders in your neighborhood, go to
While this program may not help everyone, it certainly doesn’t hurt to see if you qualify. It could be a resource to take your ARM to a fixed rate mortgage that is actually affordable.
Many homeowners facing foreclosure simply don’t know what to do. You can learn exactly what your options are, and what to do next. Take a minute and check this site out… It’s absolutely free.
Discover How Government Programs Can Stop Foreclosure
If you are facing possible foreclosure, then the government’s mortgage reduction programs can save your home. Foreclosure is a big problem that you must never underestimate. You have to seek ways how to prevent it and find programs that will reduce your mortgage payments.
The PRP or Payment Reduction Plan
The Payment Reduction Plan is specifically designed to stop foreclosures. The program seeks to reduce mortgage payments by up to 30 percent. The PRP is available for homeowners who are defaulting on their mortgage payments. It is also intended for those who can not qualify for the Home Affordable Modification Program.
You will be able to get this type of government help even if you are not currently occupying the property. Under this plan, the borrower and the servicer will mutually develop a plan to prevent foreclosure. Once the plan succeeds, then the servicer will get incentives plus the standard fees.
The Home Affordable Modification Program
This program can greatly help if your self-occupied home is facing foreclosure. You can apply if you meet the requirements of the program. The following conditions should be fulfilled:
1. You are qualified if you have defaulted on your payments and you are facing possible foreclosure.
2. You took out a mortgage on or before January 1, 2009.
3. You have an outstanding principal worth 9,750.
4. The outstanding amount should not exceed 125 percent of the total home value.
Aside from these conditions, you are also required to prove that you are experiencing real hardship. You have to prove that this hardship is forcing your to default on your mortgage payments.
You will be able to reduce your mortgage payments by up to 50 percent if you participate in the Home Affordable Modification Program. The program seeks to reduce your payments by up to 38 percent of your monthly income. There are three ways how this could be done. First, the program will reduce your interest rate. Second, the principal can be reduced. And lastly, the term of the loan can be extended. Take note though that the interest rate can not be reduced below 2 percent.
This program provides incentives for participating lenders. The lender will get an upfront fee of 00 for every application that is accepted into the program. The lender will also get 00 annually for three years if the borrower pays the mortgage diligently. Borrowers can also get incentives from Home Affordable Modification Program. If you are a borrower and you pay diligently, then you will get 00 yearly principal reduction for the first five years.
If you are interested to get a government mortgage reduction plan, then you have to be aware that there are many scams out there. Do not pay a fee to services offering so-called government assistance plans. It is also not wise to pay money for counseling.
It is not easy to qualify for government mortgage reduction plans. There are other homeowners who are also interested in these programs. So you need to thoroughly convince your lender that you need such programs in order to save your home from foreclosure.