Now this sounds interesting, I saw this on a website and with all of this stuff going on...does this actually happen?

If you have an FHA insured loan, your lender may be able to work with you in order to obtain a one-time payment from the FHA insurance pool that will bring your payment schedule current.  What in the world? One-time payment? Makes you wonder how much that one time payment is....doesn't it. For this option to occur, your delinquent status must be at least four months but no more than twelve months.  In addition, you must be prepared to resume the payment schedule as established in the mortgage. 

Your lender must file a partial claim with the FHA, which HUD will pay to the lender.  You, the borrower must sign a promissory note to repay HUD.  A lien is filed on the property; however the note carries no interest and is due when you pay off the mortgage or when you sell the house.

You may also engage in a ‘pre-foreclosure sale' by selling the property for less than is owed on the loan.  You will qualify for this option by being at least two months delinquent on the mortgage and by selling the home in three to five months.

So then, why haven't we been doing FHA loans the whole time? How and why did we get lost with these crazy w-2 stated and self-employed stated loans? If you really don't make the income, don't buy a house (that is for those who need to go W-2 stated-which does not exist anymore). My biggest question is, how do we get those w-2 stated people OUT of those ARMs? How do we help them with the foreclosures, etc? I wish lenders and the government would step in to help those who didn't qualify in the first place for their loans and those who have ARMs and Option ARMs.