What is the HOPE for Homeowners act of 2008 (H4H)?

By
Real Estate Sales Representative with The Lang Team - Keller Williams Realty

The goal for the HOPE act briefly is to:

  • To create an FHA program, with voluntary participation on the part of the homeowners and existing loan holders to insure refinanced loans for distressed borrowers to support long-term, sustainable homeownership;
  • To allow homeowners to avoid foreclosure by reducing the principle balance outstanding and interest rate charged on their mortgage;
  • To help stabilize and provide confidence in mortgage markets by bringing transparency to the value of assets based on mortgage assets;
  • To target mortgage assistance to homeowners for their principal residence;
  • To enhance the administrative capacity of the FHA to carry out its expanded role under the HOPE For Homeowners program;
  • To ensure the HOPE For Homeowners remains in effect only for as long as necessary to provide stability of the housing market; and
  • To provide servicers of delinquent mortgages with additional methods and approaches to avoid foreclosure.

 Who is eligible?

  • Borrowers who are current and are currently delinquent on their existing loans at the time of refinance are eligible.
  • The borrower must not have intentionally defaulted on their mortgage or any other debt (meaning the borrower had the funds but chose not to pay the obligations) and has made a minimum of six (6) full payments during the life of the existing mortgage.
  • The borrower must reside in the property and not have any other ownership interest in other property, including second homes or investment properties.
  • The borrower must not have been convicted of fraud under federal or state laws in the past 10 years.
  • Borrowers must certify that they did not knowingly or willfully provide material false information to obtain the existing mortgage being refinanced.
  • As of March 1, 2008, the borrower's aggregate total monthly mortgage payment debt-to-income ratio on all existing mortgages had to be more than 31% of the gross monthly income at the time. 

What existing mortgages are eligible under this program?

Any type of mortgage loan is eligible including: conventional products (Prime, Alt-A, Subprime), Government loans, fixed rate or adjustable loans. However;

  • The mortgage must have been originated (closed and funded) prior to January 1, 2008.
  • The current priority mortgage holder must:
    • Waive all prepayment penalties and late payment fees (including NSF fees).
    • Agree to accept the new H4H loan as payment in full and release the outstanding mortgage.
  • The subordinate lien holder must:
    • Waive all prepayment penalties and late payment fees (including NSF fees).
    • Release mortgage lien.

The end result is the refinance of a mortgage for a lower principal balance at 90% LTV FHA loan, by the existing lender forgiving the upside-down balance.

Posted by

David Lang

Keller Williams Fort Myers & the Islands

239-677-8780

dave@thelangteam.net

https://www.SWFloridaHomeSearch.com

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Groups:
Realtors®
All Things Florida
Mortgages
Keller Williams 'Rainers
FOR SALE BY OWNER - MARKETING(FSBO)
Tags:
fha
mortgage loans
hope
real estate
refinance
short refinance
housing bill

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
16,697

David Lang

Taking the stress out of buying and selling.
Ask me a question
*
*
*
*
Spam prevention

Additional Information