With home values threatening to fall again and nearly 25% of U.S. homeowners currently underwater in their mortgages, the Federal Housing Authority (FHA) is pledging to help homeowners by financing their loans. The program, which was announced in March and will begin September 7, will offer FHA-insured mortgages to underwater, non-FHA borrowers who are current on their mortgage payments. One caveat to qualifying for the program is that the original lenders must agree to write-off 10% of the unpaid principle balance of the loan, something lenders have been notoriously hesitant to do.
To qualified for this new program, the homeowner must be underwater in their current mortgage, be current on the loan, have a credit score of 500, and use the property as their primary residence. In announcing the program, FHA Commissioner David Stevens said, "this is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product." Homeowners interested in participating in this new program need to contact their mortgage lender to determine their eligibility.
While this program is evidence of the federal governments effort to slow the effects of the housing crisis, it may not be enough to ensure the protection of your home. If you are one of the thousands of homeowners facing a Florida Foreclosure Lawsuit, it is in your best interests to contact a Florida Foreclosure Lawyer to review the circumstances of your case. There are numerous foreclosure alternative programs, as well as legal defenses to foreclosure that may be able to save your home.
