You Can Save Your Home with the Hope for Homeowners Program and prevent a foreclosure.
The Hope for Homeowners Program was made available through the Housing and Economic Recovery Act of 2008 (HERA). You could use this program to save your house from a foreclosure if you are facing problems with repayment on your home mortgage. The Hope for Homeowners Program allows the lender to refinance the mortgage into a 30 year fixed mortgage which may reduce your monthly mortgage payments.
Qualification for Hope for Homeowners Program
The program is available for homeowners who face the risk of foreclosure between the dates of October 1, 2008 and September 30, 2011.
In order to qualify for this program the following must be true:
· The loan must have originated on or before January 1, 2008 and the home owner should have made at least six payments.
· Loan must be on a home that you currently reside in. Mortgage is on properties for investment purposes and second homes do not qualify for this Hope for Homeowners Program.
· You should not own or have interest in a second home.
· Your mortgage payment must be more than 31% of your monthly income.
· You should not have purposely missed on the mortgage payments.
· You should not have received the loan fraudulently or have been convicted of fraud in the last 10 years.
· Your mortgage should be less than $550,440.
The way that hopes for homeowners program works is that it allows to refinance the mortgage into government insured mortgages through the federal housing administration. The lender reduces the mortgage to at least 90% of the home’s current value which in the scenario of economic depression reduces the mortgage payments. The value of a home in the current market will be determined by an FHA approved appraiser.
For this program to work the lender has two voluntarily agree to making you a part of the hope for homeowners program. Each has to be willing to participate in it where he agrees to reduce the mortgage and the FHA will pay the balance discounted amount. For example, if the original mortgage loan was $400,000 and the FHA appraise is the current value at $300,000 then your current mortgage can be refinanced at 90% of the current value which will be $270,000. The FHA will pay the discounted amount to a lender.