NEW HOUSING BILL BASICS & WHAT TO LOOK OUT FOR 1

The New Housing Bill has a feature for those whose adjustable mortgages have been bumped up to a rate beyond their paying capability. The Bill gives the homeowner a way to climb out of the hole.

Lenders are encouraged to write down the mortgage by 10% of the property’s value. If the homeowner is able to transfer the mortgage and refinance through a new lender (say, a 30-year fixed mortgage), the resulting payments will be more affordable. This refinanced loan will be insured by the FHA.

The flies in the ointment are:

your current lender has to agree
you can persuade a new lender to take over
only loans arranged between January 2005 and June 2007 are eligible.

To qualify, you have to prove that your current mortgage is beyond your paying capacity and the refinanced loan has become affordable.

info from FHA website, image from Microsoft Clipart