Posts Tagged ‘upside down’
What you need to know about the Hope for Homeowners Program
There are many home owners that find themselves upside down on their mortgage. If you are upside down on your home you can find relief with the hope for homeowners program. With hope for homeowners your principal balance will be reduced. Monthly mortgage payments will be lower.
It is possible to obtain a new loan with a current appraisal. The upside down balance on your current mortgage will be forgiven. Your new mortgage will be based on 90% of the current value of your home.
The end result will be much lower payments on your mortgage each month. You may see your payments cut in half. Houses will be saved for many homeowners.
Your new mortgage will be an FHA mortgage. It will be insured by the Federal Housing Administration.
Many home owners will be provided with help on their mortgage. If you have an upside down mortgage, take the time to research this program.
You will need to provide income documentation in order to qualify for this loan. The lender will apply guidelines for you to qualify for the new loan. The reduction of your balance will be advantageous when calculating your new payment.
The H4H program was signed into law on July 30,2008. You must be living in your home to qualify for this program. The program will expire on September 30, 2011.
Not everyone will be able to qualify for this program. Maximum loan amounts do apply.
This is a great program for home owners that have been having trouble with their mortgage. Your new loan can have amazing benefits over your current loan.
The program does share your equity going forward with your past lender. Moving forward the FHA will also share in the profits if you build equity in your home. Some of your equity will be returned to the original lender when you sell your home. The amount of time that has passed will determine the sliding scale. Equity made in the future will also be shared by the FHA.
Find out more on hope to home owners.
What is the Right Decision With my Mortgage
With millions of Americans facing financial hardship and difficulty making their mortgage payments, there comes a time when a homeowner has to decide whether they should continue to make their mortgage payments and burn up their reserves or stop making the payments and conserve their cash savings. The latter deteriorates your credit and will expose you to a possible foreclosure. So the burning question when faced with this dilemma is “Should I stay or should I go” or should I refi my home?
The facts are that many people took cash out, borrowed more than they can afford, took teaser rates, or applied using some form of a stated income loan which would often over inflate the borrowers actual income through the home refinance or home purchase process. The stumbling economy and a significant loss in home values, no wonder people are becoming trapped under mortgage payments they can’t pay and a home they can’t sell. There are a lot of people that are leaving their homes and just giving the properties to lenders. Is this the best option?
I don’t have the right or wrong answer here but I do know that up until the 90’s most people bought a house as a place to live and somewhere to stay and raise a family.That might be a Walton’s way of thought but sometimes the truth hurts.It was a shock to some to see national home value increase seven percent a year though the nineties. Lending practices began to recover from the S/L crisis and a new way of thinking was born in the lending world. Are you still breathing? Do you have a credit score? Obviously you can afford a house.By then home prices were lower and stated incomes supported those prices; with that in mind it could have been okay for stated incomes.Now you have an Achilles heel with outrageous home value increases and people scrambling to spend that money of high priced toys. The blame lies with borrowers that used their homes equity like an ATM machine to buy the luxury item they desired.
Fast forward about 10 years to 2008 we are all faced with the dilemma should I stay or should I go. If I walk from my home I can buy another house in two years(in theory) based on current lending standards which if property values keep going down I can buy another house or maybe even buy back my existing house at half the price I used to owe on before I walked. This is all true you can walk, you could buy your home for less, but do you really want to?Several media and news stories have put a spotlight on a home market on life support, but the truth of the matter is everyone agreed to the terms because they suited the borrower at the time. Again You knew what you were doing when you took the cash out home refinance, you knew what you were doing when you bought the home, don’t bring everybody else down even further as somewhere along the line we must just stop this madness.With the threat of a depression looming it is time we all take control of our homes and neighborhoods to ensure we avoid foreclosure.