Relief from Adjustable Rate Mortgage Adjustments

Homeowners could finally be getting some much needed relief when it comes to Adjustable Rate Mortgages(ARM's). The Federal Housing Administration (FHA) has put together a temporary program designed to provide refinancing opportunites to borrowers of conventional Adjustable Rate Mortgages who are delinquent under their current mortgage as a result of their interest rate adjustment. Eligible applicants must demonstrate that prior to the reset or adjustment of their ARM loan they were able to meet their mortgage obligations. In some cases, an eligible borrower may be permitted to include past due mortgage payments in the new FHA loan. The true intent of the program is to assist those non-FHA borrowers who have been harmed by recent rate adjustments. The borrower's payment history on the non-FHA ARM must show that, prior to the interest rate adjustment, the borrower was current in making the monthly mortgage payments. The underwriter must determine that the interest rate adjustment caused the borrower's inability to make the mortgage payments. The borrower must also demonstrate sufficient income and resources to make the montly payments on the new loan. If there is sufficient equity in the home, the new loan may include missed mortgage payments, proving the missed payments occurred after the interest rate adjustments. Loans on which foreclosure proceedings have started are not eligible. This is great news for homeowners that have been stretched due to ARM adjustments. Won't you join me in spreading the word on this program?