The FHASecure Loan

The alarming increase in foreclosures has our country and economy in a tail spin.  Sadly, there have been instances of predatory lenders, predatory mortgage brokers and yes even predatory borrowers.  This is not the time to point fingers at who is to blame, but rather a time when we begin to “fix” the mess we are in.

If you are one of the homeowners that purchased a home during the years of the “Housing Boom”, or refinanced your property to access cash for home repairs, debt consolidation, college funds, etc  by securing one of the exotic mortgage products that offered the ultra low teaser rates that were prevalent on the Adjustable Rate Mortgages, you may find yourself facing a financial crisis, which includes foreclosure.

It is extremely important that you do not panic!  There are resources and options available to help you during this difficult time, but you have to take the first step into correcting your situation and ask for help.   Too often, homeowners that are facing foreclosure avoid their lenders, believing that no one wants to help and end up facing dire consequences.  It is important that contrary to popular belief your lender does not want to foreclose and you are not alone.

Don’t fall for false promises from some of the “Foreclosure Rescue Companies”; some unscrupulous individuals have taken advantage of desperate homeowners, leaving their unsuspecting victims in a worse situation

Keep in mind there are reputable companies and reputable solutions available to you.  The intent of this article is to provide advice, and attempt to answer any questions that you might have.  You then can make an informed decision on how you want to proceed.

The FHASecure Loan-

FHASecure is a viable refinancing option that gives credit-worthy homeowners who were making timely mortgage payments before their loans reset but are now in default an opportunity to refinance into a fixed rate mortgage.  

In order to qualify for this product you should be able to show:

* Your current mortgage is a non-FHA adjustable rate product that has reset.

* You paid your mortgage on a time prior to your interest rate adjusted

* You have missed mortgage payments since your adjustable rate mortgage reset

* You were considered credit worthy prior to your interest rate adjusted

* You have sufficient income and are capable of making future mortgage payments with the new FHA loan, and other reoccurring monthly payments.

It is important to keep in mind that FHA has maximum loan to value guidelines that vary from state to state, however,if your loan amount exceeds the prescribed limits, you are not automatically disqualified.  You may be pleased to learn that your present lender may be willing to write off the amount of indebtedness that cannot be included in the FHA insured loan, or a FHA approved lender offers you a second mortgage that will include costs that exceed the maximum amount limits.  If you are able to secure a second mortgage to cover the excess, those payments will be included in your debt to income ratios to ensure that you are able to pay both mortgage payments comfortably.