I have been talking quite a few people this week who would like to refinance their house through the FHA Secure Mortgage program, but can’t for one reason or another.  These people are s-t-u-c-k in their current loan and usually they think all is lost and that they are going to face foreclosure…

Until I tell them about “Loan Modification”.

I don’t actually do loan modifications — it is a process and negotiation between a legal firm and a lender where the legal firm negotiates with your current lender to get you into a better loan.  Often times as a result of these negotiations, the loan that people end up with is a better loan that I could have gotten them if they would have refinanced with the FHA Secure mortgage program!

Here are a few signs that you may be a candidate for loan modification:

• You are currently behind on your mortgage payments
• You have recently been denied when applying for a refinance of your current loan
• Your interest rate has adjusted or is going to adjust soon
• You have a prepay penalty on your current loan
• When you got your current loan, something “just didn’t seem right”
• You are concerned that you may soon be facing foreclosure or are currently in the foreclosure process
• You have some sort of hardship that is causing you financial difficulty

These are not the only signs that the loan modification process can help you, but it is a start.  Loan modification is not free (have you ever met a lawyer who would work for free?  I haven’t!) but if your options are either loan modification or foreclosure, it is definately worth it!

Call or email me and I can show you how to get started with the process.

According to a HUD press release released today:

WASHINGTON - U.S. Department of Housing and Urban Development Secretary Steve Preston today announced that 300,000 families have refinanced their mortgages with HUD’s affordable mortgage insurance program. Since September 2007, FHA Secure - the Federal Housing Administration (FHA) refinancing product - has provided struggling families with expanded access to safe and affordable mortgage financing. FHA is on pace to help 500,000 families by the end of the year.

“FHA remains a source of hope for families who want to stay in their homes,” said Preston. “The Bush Administration’s smart, practical solutions to expand FHA-insured financing are offering a safety net for hundreds of thousands of families in need of affordable home loans. We are focused and determined to work through the current challenges in the mortgage market.”

Back in February, I reported that HUD had begun mailing 280,000 mailers to homeowners urging them to look at the FHA Secure Mortgage program and commented:

“In a press release, HUD officials HUD officials said the first round of 280,000 letters was sent this week with another 570,000 letters to be sent through September 2008.”

Yesterday it was announced that HUD was now going to drop part 2 of their mail campaign for the FHA Secure Mortgage program — by mailing out 670,000 more mailers.  If you are having trouble paying your mortgage, chances are you might be getting a letter from HUD with the following content:

Dear Homeowner,

Do you need help with your mortgage?

Your area is experiencing a disturbing home foreclosure rate that has accelerated in recent months. News reports cite the damaging effects of “sub prime loans” as a major factor in the unsettled market. By focusing on education and safe mortgage alternatives, though, the Federal Housing Administration (FHA) of the United States Department of Housing and Urban Development (HUD) is working diligently to address this unacceptable foreclosure trend.

Over the past few months, FHA has worked with mortgage loan servicers to identify solutions for the crisis facing current homeowners. Your current mortgage does not have to be FHA insured for you to benefit from our help. If you are facing financial difficulties due to a recent or imminent mortgage reset, or other housing-related difficulty, I urge you to contact us at 1 (800) CALL-FHA or to visit www.fha.gov. There you will have the opportunity to learn about foreclosure prevention, legal rights, and credit counseling, among other topics.

Many homeowners may also be able to take advantage of our recently announced FHASecure program. This new program allows eligible homeowners to refinance into a secure, fixed-rate FHA loan even if they are in default.

Additionally, a new partnership between mortgage companies and non-profit housing counselors called HOPE NOW is available to you. Their mission is simple: reach out to homeowners who may be having difficulty paying their mortgages. For more information or to see if your mortgage company is a member of this caring coalition please go to www.hopenow.com.

Again, please contact us at 1 (800) CALL-FHA (800-225-5342) or go to www.fha.gov. As part of the federal government, the Federal Housing Administration wants to help you protect and preserve the American dream - your home.

Sincerely,

Brian D. Montgomery
Assistant Secretary for Housing
Federal Housing Commissioner

According to the press release, the FHA Secure Mortgage program “allows borrowers who are current and delinquent on their loans to refinance with the FHA, is saving tens of thousands of families on average $400 a month compared to their exotic subprime loans.”

So if you are having problems paying your mortgage and are currently in a subprime loan, take the time to speak to a mortgage professional and find out if the FHA Secure Mortgage program is right for you.

According to an article by the AP, there are several plans circulating the House, Senate and White House that call for expanding the FHA programs to help struggling homeowners with an option to save their house.

While nothing has passed yet, the bills are gaining a lot of attention because many homeowners have no current option to refinance their home due to the fact that it is “under water” — meaning they owe more than their home is worth.

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Yesterday, the Bush administration announced an expansion of the FHA Secure mortgage program that is aimed at helping more homeowners who are struggling with their mortgages.

According to the Bush administration, the FHA Secure mortgage expansion program is designed to help about 100,000 homeowners with expanded FHA refinancing options, including many who owe more than their houses are worth, reduce their monthly payments. The expansion will involve getting lenders to write down the value of the loans during an FHA refinance, and in return, shift the the risk of default to the government.

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According to the Wall Street Journal, the Bush administration is going to announce an expansion of the FHA Secure Mortgage program that is aimed at helping more homeowners who are struggling with their mortgages.

According to the Bush administration, the FHA Secure Expansion program will be announced Wednesday and is designed to help about 100,000 homeowners, including many who owe more than their houses are worth, reduce their monthly payments. The expansion will involve getting lenders to write down the value of the loans, and in return, shift the the risk of default to the government.

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Recently it was announced that the FHA Secure mortgage program has helped over 100,000 homeowners since it was announced. There has been much said about how FHA Secure may not be helping as many people as it was intended for, but if this recent announcement is any indication, the FHA Secure mortgage program is seemingly very active as an FHA refinancing option for people who can qualify.

From the HUD Press Release:

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Yesterday it was announced that HUD was mailing out 280,000 letters urging people to look into FHA Mortgage Refinancing options such as the FHA Secure mortgage program.

This is just one more sign that FHA is committed to the FHA Secure Mortgage program and trying everything it can to make it an effective FHA refinancing option for many at-risk borrowers who may not qualify for any other FHA refinance options.  It has been mentioned in the press that the FHA Secure program has not been an effective FHA refinance option because too few people are able to qualify for it and are instead looking into other FHA refinancing options.

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If you’re a homeowner who is keeping an eye on Federal Reserve interest rates, you’re not alone.

Millions of Americans watch these interest rates as they rise or fall, assuming that FHA Secure Mortgage rates and other mortgage rates will rise and fall with them. As a matter of fact, many homeowners plan to buy a home or refinance in the near future based on the state of the Federal Funds rate.

But hold up here.

Is it really true that FHA Secure Mortgage and other mortgage rates rise and fall as Federal rates do?

No, it’s not.

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There is a study being circulated at the American Securitization Forum which was obtained by Reuters that says “more than 600,000 troubled homeowners could win new mortgage terms after easing terms of the FHA Secure Mortgage program.

More specifically, the document suggests that FHA loosen its FHA Secure Mortgage program to aid not just adjustable-rate mortgage holders, but borrowers with fixed rates and those who have shown the ability to make steady payments even if they have become severely delinquent in recent months.

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