Hope for Homeowners–Govt Program Introduced

Okay, so the government is trying to do their part in setting up programs for Homeowners that have ARM’s (See lingo category) that are not consumer friendly.  Now not all ARM’s are treated the same.  I am actually in an ARM that will be actually adjusting down come next April if the projections are correct.  The best way to figure this out is to go to your Mortgage, if you don’t have a copy, just look it up on your computer under public records, in your county,  usually on pages 17-20 and you are looking for your ARM addendum.  Please do not hesitate to call me and I can help you walk through it or actually dig out the info for you.  Now once you determine wether you have a “good” ARM or not.  If the answer is “not”, time to get a game plan together.  Start with HUD.GOV on the internet, right on the homepage you will see a link for “Hope for Homeowners”.  I briefly went out there, looked at a fact sheet, requirements, etc.  The requirements look reasonable, again if you have questions, don’t hesitate to email or call and I can help you work through everything.  But the jist of the program is, that you would work with your current lender, work out a reasonable rate for a 30 year fixed at 90% value, with the understanding they will “write remaining down”.  But you will also agree to “share” any gained equity now or in the future with the lender.  So again, every situation will be different and I would say neither that this is a good or a bad program until the individual situation is looked at.  This program just started on Oct 1, 2008 so not everyone is real familiar but by doing your homework you can make an informed decision.

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~ by debt2dreams on October 7, 2008.

One Response to “Hope for Homeowners–Govt Program Introduced”

  1. Okay, so I am now trying to impliment this program with one of my clients. Going to the lender is NO help, they deny knowing anything about the program, meanwhile they are trying to get you “locked” into a new loan with a fixed rate….DO NOT do this! The H4H program is only good for loans that were done prior to 1.1.08. So that means if your current lender gets you into a new “loan”, you will not qualify. Let me give you an example. My client owes, 180K, house now worth 140K. She is at 8.65, probably going up to 9.19 on Dec 1. Now they are pressuring her to sign papers that would freeze her at 8.65 at 180K. Now if she gets into the H4H program her new loan will be 90% of 140K, which is 126K AND probably at a 6.5%….. Which program would you sign up for? People this is thousands of dollars we are talking!!! Please call or email me before making these decisions….it is so important. I know of a Mortgage Broker who is trying to get signed up as an approved lender, then we will be able to bypass current lender. We will keep you posted.

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