H4H HUD Bailout program is perhaps the saving grace for many homeowners in jeopardy of losing their homes. It is also an attempt to bring loan values back down in order with the mortgage liens against them.
I will post the guidelines for you to read, keep in mind that no one is writing these loans yet as there are many questions yet to be answered as to how they will work, how to get the lenders on board and accept the new loans, and what lenders will be offering them.
There is training in November at HUD headquarters in Atlanta where many of us will be getting questions answered. As a broker, I am preparing to have a team of experts in my office that will know this program inside and out, have attorneys who will direct us to the attorneys for the lenders to negotiate, and a team of processors direct with the FHA lenders who are trained to handle the volume that will come with this program.
Read below some Q & A:
HOPE FOR HOMEOWNERS
FREQUENTLY ASKED QUESTIONS FOR CONSUMERS
General/Program related questions
What is the HOPE for Homeowners Program (H4H)?
This new program, created by Congress, is intended to help borrowers at risk of default and foreclosure refinance into more affordable loans.
How can the H4H program help me?
If you are having trouble making your mortgage payments, this program may allow you to refinance your loan into a new 30-year fixed rate loan with lower payments.
Do I have to pay anything to apply?
There will be closing costs associated with HOPE for Homeowners loans; however, they may not be required to be paid out of pocket by the borrower. Please consult your lender or a HUD-approved Housing Counselor for more details. To find a FHA-approved lender or HUD-approved Housing Counselor, please go to www.fha.gov.
How long will the process take?
Processing time will vary, but usually takes approximately 60 days. Please consult your lender when you apply.
What information do I need to apply?
Your lender is in the best position to answer this question based on your specific situation, but at a minimum you will need evidence of your income and assets, as well as your current mortgage information.
How long is the H4H program available?
The program began on October 1, 2008 and will end on September 30, 2011.
What interest rate will I receive?
The interest rate for the new H4H loan will be provided by the lender and is based on current market rates.
I don't want another adjustable rate mortgage. Will this interest rate be fixed or adjustable?
All HOPE for Homeowners loans are 30-year FIXED RATE mortgages insured by the Federal Housing Administration (FHA).
I contacted my lender and they are not interested in participating in this program. Can I apply with HUD?
HUD does not accept loan applications or lend money directly. You may apply with any FHA-approved lender who is participating in the program. You may also consult a HUD-approved housing counselor. HOPE for Homeowners is a voluntary program for both borrowers and existing lenders. In order to complete a HOPE for Homeowners loan, however, your lender must agree to accept the proceeds of the new loan as payment in full. For further assistance you may wish to consult a HUD-approved counselor. You may contact me direct - Wendy Abner at WendyAbner@msn.com , as I participate with an approved lender in all 50 states.
My lender has started foreclosure proceedings. Can I still apply for H4H?
Yes, however, time is of the essence.
Is there an income restriction?
No, but you will need to demonstrate that you have sufficient, steady income to make the new H4H mortgage payments.
I recently filed for bankruptcy. Am I still able to apply for H4H?
Yes, borrowers in bankruptcy may participate; however, you will want to consult with the person handling your bankruptcy.
My lender has already foreclosed on my home. Can I still apply for H4H?
It may be possible depending on which stage of the foreclosure process you are in. You should talk to your lender immediately for more detailed information.
I have a first and second mortgage on my home. Can I still apply for H4H?
Yes, however, all your existing lenders must agree to release the liens against your home.
I am current on my mortgage. Can I apply for H4H?
Lender related questions
Can you recommend a lender?
HUD does not recommend lenders; however, a list of participating lenders is located on our website at www.fha.gov. In the section marked "At your service," please click on the link "Find a HUD approved Lender in your area."
I can't reach my lender and I would like to apply. What should I do?
You may contact any participating lender to apply. For a list of HUD-approved lenders, please go to our website at www.fha.gov. In the section marked "At your service," please click on the link "Find a HUD approved Lender in your area."
My lender is not registered and I would like to apply. What should I do?
You may contact any participating lender to apply. For a list of HUD approved lenders please go to our website at www.fha.gov. In the section marked "At your service," please click on the link "Find a HUD approved Lender in your area."
I am not clear on what to do. How do I decide if this is the right choice for me?
You can contact a HUD-approved Housing Counselor in your area. They can help you evaluate the different options that may be available to you, and help you determine your best course of action. You can locate a counselor in your area by going to our website www.fha.gov and clicking on the link "Talk to a Housing Counselor."
How can a housing counselor help me?
Housing counselors are knowledgeable about available programs to help struggling homeowners. They can review your specific situation, identify your options and help you make an informed decision.
Will I have to pay taxes on the portion of my loan(s) my current lender(s) "write off" or forgive?
You should contact the Internal Revenue Service at 1-800-TAX-1040, or your tax advisor regarding tax-related questions.
Feel free to contact me directly to have any questions answered.