Yay!  This is something we have all been waiting for!  We can finally help some of those folks that got into some trouble after their Adjustable Rate Mortgage Payments adjusted!

Exerpts from MORTGAGEE LETTER 2007-11 sent by HUD to all FHA approved mortgagees and Appraisers on 9/4

The FHASecure initiative, which is a temporary program designed to provide refinancing opportunities to homeowners and to increase liquidity in the mortgage market, requires that the loan application be signed no later than December 31, 2008. Eligibility Highlights of the FHASecure Initiative

• The mortgage being refinanced must be a non-FHA ARM that has reset.
• The mortgagor's payment history on the non-FHA ARM must show that, prior to the reset of the mortgage, the mortgagor was current in making the monthly mortgage payments.
• If there is sufficient equity in the home, under additional eligibility instructions provided below, FHA will insure mortgages that include missed mortgage payments.
• Under certain conditions explained below, FHA will insure first mortgages where (1) the existing note holder writes off the amount of indebtedness that cannot be refinanced into the FHA insured mortgage; or (2) either the FHA-approved lender making the new mortgage or the existing note holder may take back a second lien that includes closing costs, arrearages or previous secondary financing if the indebtedness exceeds FHA prescribed LTV and maximum mortgage amount limits. 
• Mortgagees must determine, as part of the underwriting process, that the reset of the non-FHA ARM monthly payments caused the mortgagor's inability to make the monthly payments and that the mortgagor has sufficient income and resources to make the monthly payments under the new FHA-insured refinancing mortgage.

Borrowers will need to discuss this initiative with their trusted mortgage advisors!