If You Want to Keep Your Home...
If you’re waiting to hear from the mortgage company, call the “HOPE Now” hotline: (888) 995-HOPE. It’s part of the Federal Housing and Economic Recovery Act that was signed into law by President Bush this year. The Act created the Hope for Homeowners (H4H) program, which kicked off Oct. 1st. The government estimates that as many as 400,000 homeowners could receive relief in the form of lower, more affordable loans.
Speculators need not apply. If you bought at the peak of the housing bubble intending to “flip” the home in six months and reap a profit, you’re on your own. The Federal Housing Administration makes it clear that H4H is designed for owner-occupied residences.
If you qualify, you will be able to borrow as much as $550,440 via a 30-year, fixed rate mortgage. But whatever your loan amount, the first criteria is that you can realistically afford it. The following must also be true:
1. You took out your current mortgage before January 1, 2008
2. You did not lie or falsify information in order to get your original mortgage
3. You did not intentionally default on your payments
4. You have not been convicted of fraud in the past 10 years
5. Your payment is greater than 31% of your gross monthly income
6. You do not own any other residential real estate
You can learn more about the Hope for Homeowners program at http://www.hud.gov/fha/home080730.cfm. Click on the link for your state to get started.
Or, call the HOPE Now Hotline, which will put you in touch with trained counselors in your area. They can help you explore your options.
The newly-passed Emergency Economic Stabilitzation Act (EESA) expands eligibility under the H4H program and gives federal agencies more tools and money to assist families keep their homes. It also directs federal mortgage agencies to modify the loans that they own or control.
The Whole Story: http://www.foxbusiness.com/story/personal-finance/renegotiating-mortgage/
If you do not qualify for H4H relief and would like to speak to a specialist about your situation click here.
