It’s called the FHA REFINANCE OPPORTUNITY. I think it should be called the “YOU MUST BE KIDDING”. It is designed for homeowners who are current in their mortgage payments, but have weathered big local home value loss.
The homeowner can get 10% of the original first lien written off. It sounds great in theory but, here’s the rub. In their infinite wisdom, the decision makers in this “opportunity” have made the current lien holders the keepers of the castle. If the homeowner cannot get the lien holders permission, they don’t qualify.
Just for discussion purposes, let’s say a buddy owes me $10,000. Each month my buddy has paid me the agreed upon amount of $1000. What is my motivation to let him off the hook for $1000? If it isn’t broke, why would I fix it? I have a feeling the lien holders are going to react the same way.
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