| If your mortgage is under an FHA loan, there may be | | | | of homeowners who are on the verge of losing their |
| FHA loan modification options open to you. Many | | | | homes to foreclosure, whether their mortgages are |
| homeowners who are uninformed but on the road to | | | | through FHA or other lenders. However, as it stands |
| foreclosure fear that FHA home loans are ineligible for | | | | now homeowners under FHA loans are finding it |
| modification, but under the Housing and Economic | | | | exceedingly difficult to get loan modifications and steps |
| Recovery Act passed in 2008, FHA lenders were | | | | are being taken to make it easier for everyone to |
| given the permission and funding to accommodate | | | | receive loan modification assistance. |
| loan modification. | | | | Because the FHA loan modification standards under |
| FHA loan modification stretches the mortgage through | | | | the Housing and Economic Recovery Act are |
| up to a thirty year period with a lower, fixed interest | | | | ridiculously strict, the Obama Administration is currently |
| rate to make it possible for millions of homeowners to | | | | pushing to allow FHA loans to meet other loans' |
| keep their homes. In order to be eligible for an FHA | | | | standards under the Home Affordable Modification |
| loan modification, under the Streamlined Modification | | | | Program. Many homeowners, under FHA mortgages |
| Program, a homeowner must: | | | | or otherwise, are living on property which has fallen far |
| - Be at least three or more months behind on their | | | | below 90 percent of initial purchase value. There are |
| mortgage payments. | | | | even properties which have fallen to or below 50 |
| - Not be in bankruptcy. | | | | percent of their previous value -- quite a far cry from |
| - Reside in the residence they want the FHA loan | | | | 90 percent. |
| modification to cover. | | | | The FHA loan modification program under the Housing |
| Also, the mortgage must have been taken out prior to | | | | and Economic Recovery Act has fallen flat on its face |
| January 1, 2008 and the current value of the property | | | | since its launch in October, helping only handfuls of |
| must be no less than 90% the initial value. | | | | families across the country. No progress towards |
| An FHA loan modification entails: extending the loan for | | | | recovery for the housing market can be made unless |
| as long as appropriate with the new interest rate, | | | | loan modification is made more accessible for those |
| reducing the interest rate to a minimum of 3 percent (if | | | | who have property covered by FHA loans. |
| appropriate), and a balloon payment when the loan is | | | | If you are a homeowner covered by a FHA home |
| paid off, matures, or goes through refinancing. | | | | loan and your property value has plummeted like the |
| Loan modification seems to be the answer for millions | | | | rest of America's, hold on tight. |