eligibility requirements for foreclosure refinance

[Hope For Homeowners]

Hope for Homeowners

Hope for Homeowners will be offering a 30 year fixed rate mortgage meaning the borrower's last payment will be the same as the first payment except for escrow fees. The Hope for Homeowner program will maintain FHA's long standing requirement that new loans be based on a families ability to repay the mortgage. Only owner occupants are eligible for FHA-insured mortgages.

Requirements for the Hope for Homeowner program are:

Potential mortgagees must have originated on or before January 1, 2008;

They cannot afford their current loan;


They must have made a minimum of six full payments on their existing first mortgage and did not intentionally miss mortgage payments;


They do not own a second home;


Their mortgage debt-to-income must be at least 31 percent;


They did not knowingly or willfully provide false information to obtain the existing mortgage, and they have not been convicted of fraud in the last 10 years;


They must follow FHA's long-standing and strict policy of fully documented income and employment.


Homeowners must agree to share both the equity created at the beginning of their new HOPE for Homeowners mortgage and any future appreciation in the value of their home.
Share amounts:
If you sell or refinance:

During Year 1 FHA receives 100%, or $20,000 You receive 0%, or $0
During Year 2 FHA receives 90%, or $18,000 You receive 10%, or $2,000
During Year 3 FHA receives 80%, or $16,000 You receive 20%, or $4,000
During Year 4 FHA receives 70%, or $14,000 You receive 30%, or $6,000
During Year 5 FHA receives 60%, or $12,000 You receive 40%, or $8,000
After Year 5 FHA receives 50%, or $10,000 You receive 50%, or $10,000



To participate, existing subordinate lenders must agree to release their outstanding mortgage liens.
The new HOPE for Homeowners mortgage payment must be at or below 31 percent of the borrower's income, unless there is "trial modification" period prior to loan application. A trial modification would give borrowers the opportunity to demonstrate their capacity and willingness to make a mortgage payment that does not exceed 38 percent of their monthly income.

Funding
FHA will insure up to $300 billion in new loans.

Program Timeline
The program will last from October 1, 2008 through September 30, 2011.

Voluntary Lender Participation
FHA will continue to offer lenders an alternative to foreclosing on borrowers. Similar to FHASecure, lenders will be required to write-down the outstanding mortgage principal balances to 90 percent of the new value of the property. In many cases, reductions in principle will cost lenders less than the losses associated with foreclosure.

Homeowners In Need Should Act Now
While lenders are gearing up to offer this new program, families should not wait to seek mortgage relief. Right now, homeowners can determine if they are already eligible for mortgage assistance through FHASecure. They can obtain information through the following option.



HOPE for Homeowners
Examples of How Equity and Appreciation Are Shared

These are examples of how the unique equity and appreciation sharing elements of this program work. Keep in mind that these are only examples, and your actual experience will depend on many things, including how much your home increases or decreases in value

1. Let’s say your home has an appraised value at the time you receive your FHA mortgage of…………. $200,000.
2. And your mortgage is 90% of this, or……....
$180,000.
3. This means the initial equity is the difference between 1 and 2, or……………………………….. $20,000.

In this example, you and the FHA share this $20,000 when you sell your home or refinance your loan. Here’s how that $20,000 would be split:


So, if you sell or refinance right after receiving the new loan, the FHA keeps the equity that was created, and you don’t receive any of it. On the other hand, let’s assume you stay in this loan and don’t sell or refinance for ten years. At that point, you’re entitled to half of the equity – in this example, that’s $10,000 – and the FHA is entitled to the other half.

In addition to this equity sharing, you will have to share any future home price appreciation with the FHA. This means that, if your home has gone up in value between the time you receive your FHA mortgage and the time of your home sale (or other disposition), you will share the amount of this increase with the FHA (less closing costs and a portion of any improvements you have made). This is a 50/50 split that does not change over time.

For example, if:
1. The value of your home when you take out this loan is……………………………………………. $200,000
2. After some years, you decide to sell. Now the home is worth…………………………………… $250,000
3. That means the appreciation is the difference between 1 and 2, or……………………………… $50,000
In this example, you would keep half of this, or $25,000. The FHA would also receive half, which is also $25,000.

But what if the value of the home goes down?

4. The value of your home when you take out this loan is……………………………………………. $200,000
5. Now you sell, and the home is only worth…………………………………… $175,000
6. That means the appreciation is the difference between 1 and 2, or……………………………… -$25,000

In this example, the appreciation is actually negative (the home has depreciated), so there is nothing of financial value to share. As far as the appreciation sharing feature of your HOPE for Homeowners loan, neither you nor the FHA would receive anything.

These examples assume that there are no closing costs when you sell your home and that you have made no improvements to your home.

Again, keep in mind that these are just examples, and your actual experience will vary depending on factors such as: How much your home is worth when you get a new HOPE for Homeowners loan, how long you stay in your home, and how much your home is worth when you sell.

[dbernard1227]

how do you get information to admin so you can recieve help we have been in our home for 10 yrs original owners no second mort no second home

[Hope For Homeowners]

we are in the process of assisting homeowners, unfortunately the program is not available today but should be in the near future meanwhile you may want to contact your lender and see what programs they have available to help. We also help but want you to see if you can get the ball rolling first because this site is not to promote our loan modification business but help homeowners fight for their rights to stay in their homes.

The government programs have not been funded yet and there have been issues in the last few weeks with the way they were planning to distribute the money.