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FHA Assisting Mortgage Holders Delinquent After ARM Resets

Yay!  This is something we have all been waiting for!  We can finally help some of those folks that got into some trouble after their Adjustable Rate Mortgage Payments adjusted!

Exerpts from MORTGAGEE LETTER 2007-11 sent by HUD to all FHA approved mortgagees and Appraisers on 9/4

The FHASecure initiative, which is a temporary program designed to provide refinancing opportunities to homeowners and to increase liquidity in the mortgage market, requires that the loan application be signed no later than December 31, 2008. Eligibility Highlights of the FHASecure Initiative

  • The mortgage being refinanced must be a non-FHA ARM that has reset.
  • The mortgagor's payment history on the non-FHA ARM must show that, prior to the reset of the mortgage, the mortgagor was current in making the monthly mortgage payments.
  • If there is sufficient equity in the home, under additional eligibility instructions provided below, FHA will insure mortgages that include missed mortgage payments.
  • Under certain conditions explained below, FHA will insure first mortgages where (1) the existing note holder writes off the amount of indebtedness that cannot be refinanced into the FHA insured mortgage; or (2) either the FHA-approved lender making the new mortgage or the existing note holder may take back a second lien that includes closing costs, arrearages or previous secondary financing if the indebtedness exceeds FHA prescribed LTV and maximum mortgage amount limits. 
  • Mortgagees must determine, as part of the underwriting process, that the reset of the non-FHA ARM monthly payments caused the mortgagor's inability to make the monthly payments and that the mortgagor has sufficient income and resources to make the monthly payments under the new FHA-insured refinancing mortgage.

Borrowers will need to discuss this initiative with their trusted mortgage advisors!

 

Warm Regards,

Bridget McGee  Maryland Mortgage Mama  NMLS# 196068  Corridor Mortgage Group.   410-960-2061 EHO   bmcgee@corridormtg.com or marylandmortgagemama@gmail.com

 

If you are considering purchasing a home in Maryland and want to be sure you are mortgage ready, my brother Tony and I will be happy to help! We help to make the mortgage process a pleasure! 

If you already own your home, we are happy to provide a no-cost mortgage review to help you to determine if refinancing may be in your best interest.  Please contact me at 410-960-2061.

Comment balloon 2 commentsBridget "Mortgage Mama" McGee • September 05 2007 12:48PM

Comments

This is awesome information.  Thanks for bringing it to our attention!
Posted by Matthew Rosov, Certified Mortgage Planning Specialist (Amerisave Mortgage Corporation) almost 12 years ago

No problem Matt, thanks for reading it!

Posted by Bridget "Mortgage Mama" McGee, Maryland Mortgage Mama NMLS#196068 (SWBC Mortgage 410-960-2061) almost 12 years ago

Participate