Hope for Homeowner program intends to help the homeowners who are at the risk of default and foreclosure by offering affordable loans. It is an additional mortgage option that helps to keep the homeowners in their homes. This program is effective from October 1st 2008 thru September, 30th 2015. Approximately 400,000 homeowners can avoid foreclosure with the help of this program.
If you find it hard to make your mortgage payments, then Hope for Homeowners program is perfect for you. It can help you by refinancing your loan into a new 30-year fixed rate loan. As you can repay the loan with lower monthly payments, you can avoid the risk of foreclosure.
You can participate in the Hope for Homeowners program in several ways:
- You can contact the existing lender or a new lender to get a clear understanding about how to qualify for this program. There are counselors, who work with the distressed homeowners. You can contact them to get the best possible solution for avoiding foreclosure.
- The servicers who are working with the troubled homeowners can help you to obtain a good solution. The best solution to avoid foreclosure is to refinance your loan into an affordable Hope for Homeowners loan.
- There are some lenders, who look for ways to refinance the distressed homeowners. They wish to help the homeowners to come out of their high cost loans. They are ready to assist the troubled homeowners along with the servicers. You can seek their help to avoid foreclosure.
The best way to participate in the Hope for Homeowners program is to contact the servicing lenders. The lenders assess your portfolio and perform a cost benefit analysis in order to determine whether it is feasible to offer the Hope for Homeowners program. The lenders may provide you an affordable monthly mortgage payment through a loan modification.
The lender would assess whether you are eligible to get help under this program. If your existing mortgage was originated on or before January 1, 2008, then you may be considered for the Hope for Homeowners program. Your existing mortgage payment needs to be more than 31% of your gross monthly income. You should not provide any false information to obtain the mortgage that is refinanced by this program. You should not have ownership interest in any other residential real estate.
The lender considers that you are a qualified borrower, after ensuring your capability of making the new payment on the Hope for Homeowner program. Once he is satisfied, he would provide the loan amount. He would also submit the new mortgage for insurance to Federal Housing Administration. He would also certify that the loan has been originated, underwritten, and closed in accordance with the guidelines of the Hope for Homeowners program.
If you want to sell the property, you need to use your sale proceeds to settle the Hope for Homeowners mortgage along with the shared equity and shared application mortgages. If you retain the property, you need to make the payments promptly. If you fail to pay the first payment, the Hope for Homeowner statute prevents FHA from paying the claim benefits to hold the mortgage.