Hope for Homeowners continues to be the flag ship program the Federal Government is using to help distressed homeowners. Since it has gone into effect October 1, 2008 to this date, March 2010. Only a fraction of the homeowners have been helped in comparison to the number of homeowners projected.
Why? Banks continuing to hold onto the lending approval reins tighter than most people anticipated. More Government red tape than predicted and a housing and job market in the doldrums longer than expected. These are all factors contributing to the less than stellar performance of the Hope for Homeowners Program.
However, we still continue to receive questions at a fast clip from our savvy readers on this latest Federal Housing Rescue bill. Here's the top 5 frequently asked questions for the month of March 2010. Hopefully the answers as well as the questions will give you a clearer view of this latest program.
Note: Questions have been edited for the purpose of brevity and clarity.
1. What Is the Hope For Homeowner Program?
Congress created The Hope for Homeowners program to help homeowners in danger of default and foreclosure. The program is designed to help the homeowner refinance into a more affordable loan. For example, a 30 year fixed rate, as well as a lower monthly payment.
2. What's The Homeowner Obligated To Do To Be Approved?
A. The homeowner pays a 3 percent upfront mortgage insurance premium and a 1.5 percent yearly premium.
B. They agree to sharing any equity accumulated during ownership with the Government.
C. Homeowner is not allowed to have any junior liens against the home outside of property maintenance or improvement.
3. How Do Lenders Determine My Eligibility?
The existing mortgage was originated on or before January 1, 2008. Existing mortgage payment(s) as of March 1, 2008 exceeds 31 percent of the borrowers gross monthly income. The homeowner did not intentionally default, does not have an ownership interest in other residential real estate and has not been convicted of fraud in the last 10 years under Federal and state law. The homeowner did not provide false information (e.g., lied about income) to obtain the mortgage that is being refinanced.
4. What Happens If I Decide To Sell My Home After I'm In The Program?
If you sell your home, you'll use the money to pay first pay off the Hope For Homeowners Mortgage. After that you'll pay the shared equity and shared appreciation amounts if any.
5. As A Homeowner, How Can I Get Help?
Here's the quickest ways you can get help:
1. Contact your current lender to see if they're participating in the program and to see if you qualify.
2. Contact a H.U.D counselor to see if they can help you find a lender who is participating in the program.
These are the questions many people wanted to know about this latest Government rescue plan. Stay tuned, we'll keep you informed on the ongoing changes, updates and improvements as they happen.
