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The Hope for Homeowners Loan was recently created by the US Government to provide a vehicle to help American Homeowners avoid Foreclosure. This new FHA Loan Program (aka H4H) is an incredible option for homeowners looking to stop foreclosure and provide debt relief from unafforable or late mortgage payments.
The FHA Hope For Homeowners Loan is specifically tailored to help homeowners that are in finacial trouble the opportunity to stay in their homes during these difficult economic times. In many cases, the principal balance is actually reduced to 90% of the current appraised value instantly providing equity back into the home. This program is a dream come true for any homeowner who is "upside-down" on their mortgage or owes more than their home is worth.
Here is a private, Free Information Line where you can see if you qualify and ask any questions you may have about this great new program: 1-800-857-1945
If your mortgage payments have become unaffordable or you owe more than your home is worth do your self a favor and find out how the FHA Hope for Homeowners Loan Program can lower your payments and cut your principal balance down!
Here is a recent Newspaper article about this great new program:
Tip From the Home Team: On road to foreclosure? Here's a rescue.
-Barbara Marshall
The Palm Beach Post
Saturday, October 11, 2008
*******************************
Hope For Homeowners Free Help Line: 1-800-857-1945
How the Program Works There are four ways that a distressed homeowner can pursue participation in the HOPE for Homeowners Loan program: Homeowners may contact their existing lender and/or a new lender to discuss how to qualify and their eligibility for this program. Loan Specialists working with troubled homeowners may determine that the best solution for avoiding foreclosure is to refinance the homeowner with a HOPE for Homeowners loan. Originating lenders who are looking for new ways to refinance potential customers out from under their high-cost loans and/or who are willing to work with servicers to assist distressed homeowners. Loan Counselors who are working with troubled homeowners and their lenders to reach a mutually agreeable solution for avoiding foreclosure. It is envisioned that the primary way homeowners will initially participate in this program is through the servicing lender on their existing mortgage. Servicers that do not have an underwriting component to their mortgage operations can partner with an FHA-approved lender that does. Step 1: Cost-Benefit Analysis Lender considerations: Given their fiduciary responsibilities and financial obligations, lenders will assess their portfolio and perform a cost-benefit analysis to determine the feasibility of offering this program to struggling homeowners. Affordability versus value: lenders will take a loss on the difference between the existing obligations and the new loan, which is set at 90 percent of current appraised value. The lender may choose to provide homeowners with an affordable monthly mortgage payment through a loan modification rather than accepting the losses associated with declining property values. Borrower eligibility: Lenders that determine the H4H program is a feasible and effective option for mitigating losses will assess the homeowner’s eligibility for the program: The existing mortgage was originated on or before January 1, 2008; Existing mortgage payment(s) as of March 1, 2008 exceeds 31 percent of the borrowers gross monthly income; The homeowner did not intentionally default, does not have an ownership interest in other residential real estate and has not been convicted of fraud in the last 10 years under Federal and state law; and The homeowner did not provide materially false information (e.g., lied about income) to obtain the mortgage that is being refinanced into the H4H mortgage.Consumer considerations: The lender will disclose to the homeowner the benefits of the program: Home retention, New affordable mortgage based on current appraised value, 10 percent equityThe lender will also disclose to the homeowner the costs of the program: 3 percent upfront mortgage insurance premium and a 1.5 percent annual premium, Equity and appreciation sharing with the Federal government, and Prohibition against new junior liens against the property unless they are directly related to property maintenance.Step 2: Negotiations Between Borrowers and Lien Holders If the lender refinancing the loan does not hold the senior mortgage lien, it will need to secure an agreement from the existing lien holder to waive all prepayment penalties and default fees on the existing loan and accept the loan proceeds from the H4H loan as payment in full. The loan amount (including the 3 percent UFMIP) for the new H4H loan cannot exceed 90 percent of the current appraised value of the property. The lender will engage existing subordinate mortgage lien holders to extinguish all subordinate liens on the subject property. To entice subordinate lien holders to participate in the negotiation process and release their liens, FHA has the authority to share its future appreciation entitlement with them. Step 3: Originating an H4H Mortgage The lender will qualify the homeowner for the new H4H mortgage using the guidelines established under the terms of the program’s unique statutory requirements, ensuring the homeowner has the capacity to make the new payment on the H4H mortgage in a timely manner. During underwriting of the loan, the lender will calculate the future appreciation interest amount for each subordinate lien holder in accordance with instructions provided by FHA. At settlement, subordinate lien holders will receive a certificate that evidences their interest as an obligation backed by HUD, with payment conditional on the value of HUD’s appreciation share. Following funding of the loan the lender will record – in addition to the typical security instrument and note for the first mortgage – a shared equity note and mortgage (SEM) and a shared appreciation note and mortgage (SAM). These mortgages will be serviced by FHA. The lender will also submit the new mortgage for insurance to FHA, certifying that it has been originated, underwritten and closed in accordance with the H4H program guidelines. Step 4: Fulfilling H4H Mortgage Obligations Upon sale of the property, the homeowner will use their sale proceeds to pay off the H4H mortgage as well as the shared equity and shared appreciation mortgages. FHA will provide instructions to the settlement agents regarding subordinate lien holders who are entitled to a portion of any appreciation. The lien holder that previously held the highest priority will receive payment up to the full dollar amount of its interest, not to exceed the amount of available appreciation, and so on, until all prior lien holders are satisfied or the amount of available appreciation is exhausted. All remaining appreciation is remitted to FHA. In instances where the homeowner failed to make the first payment on their new H4H mortgage, the H4H statute prevents FHA from paying claim benefits to anyone holding the mortgage. Get a free consultation and have all of your H4H questions answered with no obligation:Hope For Homeowners Free Help Line: 1-800-857-1945
The FHA Hope For Homeowners Loan is specifically tailored to help homeowners that are in finacial trouble the opportunity to stay in their homes during these difficult economic times. In many cases, the principal balance is actually reduced to 90% of the current appraised value instantly providing equity back into the home. This program is a dream come true for any homeowner who is "upside-down" on their mortgage or owes more than their home is worth.
Here is a private, Free Information Line where you can see if you qualify and ask any questions you may have about this great new program: 1-800-857-1945
If your mortgage payments have become unaffordable or you owe more than your home is worth do your self a favor and find out how the FHA Hope for Homeowners Loan Program can lower your payments and cut your principal balance down!
Here is a recent Newspaper article about this great new program:
Tip From the Home Team: On road to foreclosure? Here's a rescue.
Finally there is some federal help for people in danger of losing their homes.
Created by Congress, the Hope for Homeowners (H4H) program is aimed at helping homeowners who are "upside down" (owe more than the house is worth) in mortgages they can't afford. Under the three-year program which began October 1, qualified homeowners will be given new fixed-rate loans with affordable payments. Lenders who offer this program will take losses but would still get some return and avoid costly foreclosure proceedings.
Here's how H4H works and who qualifies:
Your mortgage must have been issued before January 1, 2008.
You must be spending 31 percent or more of your gross monthly income on mortgage payments.
You can be up-to-date or in default on your payments but must prove that you can't keep paying your current mortgage. Also, you can not have intentionally defaulted on a previous mortgage or own other residential real estate.
Homeowners who qualify will get a new mortgage with more affordable payments. The new mortgage will be set at 90 percent of current appraised value - not the balance on the old mortgage. As a result, if you have an H4H loan, you will immediately accrue 10 percent equity in your home.
Instead of handing in your keys to the bank and walking away from your home, HOPE for Homeowners may offer an immediate solution and help stabilize the real estate market. See any licensed FHA lender for details. Created by Congress, the Hope for Homeowners (H4H) program is aimed at helping homeowners who are "upside down" (owe more than the house is worth) in mortgages they can't afford. Under the three-year program which began October 1, qualified homeowners will be given new fixed-rate loans with affordable payments. Lenders who offer this program will take losses but would still get some return and avoid costly foreclosure proceedings.
Here's how H4H works and who qualifies:
Homeowners who qualify will get a new mortgage with more affordable payments. The new mortgage will be set at 90 percent of current appraised value - not the balance on the old mortgage. As a result, if you have an H4H loan, you will immediately accrue 10 percent equity in your home.
-Barbara Marshall
The Palm Beach Post
Saturday, October 11, 2008
*******************************
Hope For Homeowners Free Help Line: 1-800-857-1945
How the Program Works There are four ways that a distressed homeowner can pursue participation in the HOPE for Homeowners Loan program: Homeowners may contact their existing lender and/or a new lender to discuss how to qualify and their eligibility for this program. Loan Specialists working with troubled homeowners may determine that the best solution for avoiding foreclosure is to refinance the homeowner with a HOPE for Homeowners loan. Originating lenders who are looking for new ways to refinance potential customers out from under their high-cost loans and/or who are willing to work with servicers to assist distressed homeowners. Loan Counselors who are working with troubled homeowners and their lenders to reach a mutually agreeable solution for avoiding foreclosure. It is envisioned that the primary way homeowners will initially participate in this program is through the servicing lender on their existing mortgage. Servicers that do not have an underwriting component to their mortgage operations can partner with an FHA-approved lender that does. Step 1: Cost-Benefit Analysis Lender considerations: Given their fiduciary responsibilities and financial obligations, lenders will assess their portfolio and perform a cost-benefit analysis to determine the feasibility of offering this program to struggling homeowners. Affordability versus value: lenders will take a loss on the difference between the existing obligations and the new loan, which is set at 90 percent of current appraised value. The lender may choose to provide homeowners with an affordable monthly mortgage payment through a loan modification rather than accepting the losses associated with declining property values. Borrower eligibility: Lenders that determine the H4H program is a feasible and effective option for mitigating losses will assess the homeowner’s eligibility for the program: The existing mortgage was originated on or before January 1, 2008; Existing mortgage payment(s) as of March 1, 2008 exceeds 31 percent of the borrowers gross monthly income; The homeowner did not intentionally default, does not have an ownership interest in other residential real estate and has not been convicted of fraud in the last 10 years under Federal and state law; and The homeowner did not provide materially false information (e.g., lied about income) to obtain the mortgage that is being refinanced into the H4H mortgage.Consumer considerations: The lender will disclose to the homeowner the benefits of the program: Home retention, New affordable mortgage based on current appraised value, 10 percent equityThe lender will also disclose to the homeowner the costs of the program: 3 percent upfront mortgage insurance premium and a 1.5 percent annual premium, Equity and appreciation sharing with the Federal government, and Prohibition against new junior liens against the property unless they are directly related to property maintenance.Step 2: Negotiations Between Borrowers and Lien Holders If the lender refinancing the loan does not hold the senior mortgage lien, it will need to secure an agreement from the existing lien holder to waive all prepayment penalties and default fees on the existing loan and accept the loan proceeds from the H4H loan as payment in full. The loan amount (including the 3 percent UFMIP) for the new H4H loan cannot exceed 90 percent of the current appraised value of the property. The lender will engage existing subordinate mortgage lien holders to extinguish all subordinate liens on the subject property. To entice subordinate lien holders to participate in the negotiation process and release their liens, FHA has the authority to share its future appreciation entitlement with them. Step 3: Originating an H4H Mortgage The lender will qualify the homeowner for the new H4H mortgage using the guidelines established under the terms of the program’s unique statutory requirements, ensuring the homeowner has the capacity to make the new payment on the H4H mortgage in a timely manner. During underwriting of the loan, the lender will calculate the future appreciation interest amount for each subordinate lien holder in accordance with instructions provided by FHA. At settlement, subordinate lien holders will receive a certificate that evidences their interest as an obligation backed by HUD, with payment conditional on the value of HUD’s appreciation share. Following funding of the loan the lender will record – in addition to the typical security instrument and note for the first mortgage – a shared equity note and mortgage (SEM) and a shared appreciation note and mortgage (SAM). These mortgages will be serviced by FHA. The lender will also submit the new mortgage for insurance to FHA, certifying that it has been originated, underwritten and closed in accordance with the H4H program guidelines. Step 4: Fulfilling H4H Mortgage Obligations Upon sale of the property, the homeowner will use their sale proceeds to pay off the H4H mortgage as well as the shared equity and shared appreciation mortgages. FHA will provide instructions to the settlement agents regarding subordinate lien holders who are entitled to a portion of any appreciation. The lien holder that previously held the highest priority will receive payment up to the full dollar amount of its interest, not to exceed the amount of available appreciation, and so on, until all prior lien holders are satisfied or the amount of available appreciation is exhausted. All remaining appreciation is remitted to FHA. In instances where the homeowner failed to make the first payment on their new H4H mortgage, the H4H statute prevents FHA from paying claim benefits to anyone holding the mortgage. Get a free consultation and have all of your H4H questions answered with no obligation:Hope For Homeowners Free Help Line: 1-800-857-1945
