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Hope for Homeowners Guidelines |
Hope for Homeowners or Homeowner Bailout Bill - is the proposed name for the new FHA Foreclosure Prevention program which was just signed into law. The new housing legislation calls for the FHA to create this program and have it available by October 1st. The program is expected to insure around $300 billion in new fixed rate loans. Democrats also have just asked lenders to hold off on foreclosures for people who may qualify for the program.
The official guidelines for this program have not yet been written but according to the bill that was just made law the following are likely to be the main points around the guidelines which should be released soon.
- The house in question must be your primary residence. Second homes or investment properties are not eligible.
- Your mortgage must have been taken out within the time period January 2005 to June 2007.
- You must currently have a debt ratio higher then 31% any lower and you are not considered in hardship. Your debt ratio is calculated like this: (Total Monthly Debt Payments / Total Monthly Income)x100
- You must also submit proof that you can not afford your current mortgage. Expect to submit your monthly statements for mortgage and any other loans along with paystubs.
- Proof that you can afford the new mortgage payment of 90% of the current appraised value of the home. You must be able to comfortable make payments on this amount.
- Home equity lines must be paid off or satisfied.
- The program is voluntary impart by your bank. They would have to allow you to partake in this refinance program.
- Once you met the guidelines for this program you would be refinanced at 90% of the current appraised value of your home, which in most cases would be a substantially lower payment. Also looks like you would have to stay in the home for a specific period of time or give all proceeds to the FHA if you sell early.
Everyone is encouraged not to wait for this bill if you are in trouble or think that you will be. Since it is voluntary for your bank to let you enter this transaction there is no promise they will grant you such authorization. Learn how you can get real help now, click here .
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H4H
