FHA Mortgage Guide

HUD is out with still-another news release proclaiming the real estate equivalent of “Mission Accomplished.”

According to HUD, “in August 2007, the Bush Administration launched a new initiative at FHA to modify its refinancing program, FHASecure, to help creditworthy homeowners swept up in subprime loans who missed payments after their teaser rates reset.”

What about borrowers who missed payments before teaser rates re-set? Would it be surprising that a subprime borrower might not have stellar credit — the very reason that they are subprime borrowers?

“In April 2008, the Bush Administration announced an expansion of FHASecure, which will start in July, to help homeowners with subprime adjustable rate subprime mortgages who can no longer afford their mortgages and missed up to three monthly mortgage payments over the past 12 months. Rather than go into foreclosure, eligible borrowers can refinance with FHA and lenders can voluntarily write down the outstanding subprime mortgage principal balances. This will provide an equity cushion and protect taxpayers against risk.”

What about those who have toxic loans but are not subprime borrowers?

Here’s the latest update from HUD — though you won’t see these numbers in a news release:

For the period from May 1st through May 15th the FHA approved the refinancing of 284 delinquent conventional loans.

For the period from October 1, 2007 through May 15, 2008, HUD has refinanced loans held by 2,560 delinquent conventional borrowers.

For the full release, press here.

Check out these FHA resources for more information

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