The House of Representatives, the Senate and the President are all on board to approve a $300 billion dollar bill which would help homeowners on the brink of losing their home avoid foreclosure.
If you are interested in applying for this voluntary program talk to your current mortgage servicer. You can also contact a FHA approved lender for help. If you would like a list of these lenders, let me know. I can give you additional information.
But who qualifies? Below are just a few of the qualifications that are being reported by media outlets around our nation.
* Your home loan had to be issued between Jan. 2005 and June of 2007.
*Borrowers that are planning on getting a home equity loan, must have FHA approval. Your debt cannot be greater than 95% of your home’s appraisal value.
*Before you can get a FHA backed mortgage, the borrower must get rid of lines of credit or a home equity loan. Borrowers will not be allowed to take out a home equity loan for 5 years. There is an exception to this last statement. A borrower may take out a home equity loan only if it is used to pay for the upkeep on the home.
*You don’t have to be in default yet! Now you do have to prove that you will not be able to pay your existing mortgage.
*If you are already in default, you much prove that you are not purposely defaulting just to take advantage of the lower rates this program may offer.
Of course, I am not going over the entire program. It will be very interesting to see how this program, once it is approved, will effect our nation’s housing crisis. Let me know what you think!