Is FHA Secure a Bad Credit Mortgage?

Is it the Foreclosure Refinance?

These are two very popular questions I’ve been getting about the FHA Secure Short Refinance Loan so let’s look at these mortgage questions one at a time.

Is FHA Secure a Bad Credit Mortgage?
No – I help homeowners all the time fit into the FHA Secure Short Refinance Loan who have flawless credit and 700 plus credit scores. The key here is to be able to prove that your current mortgage is causing an undue financial burden and will eventually push you into a situation where foreclosure is a posibility. Please keep in mind you do NOT have to be late on your mortgage, or other credit, to qualify.

Is FHA Secure the Foreclosure Refinance?
The FHA Secure was created to help prevent foreclosure through helping homeowners who are faced with foreclosure being a real possibility. According the HUD there is no limit to how far behind a homeonwer can be and still qualify for the FHA Secure Loan. While a Foreclosure Refinance is possible under FHA Secure it is highly recomended that you talk with and open communications with your current lender if you are in this situation. If you are in foreclosure you should also speak with a HUD approved housing counselor. You can find them here.

In Summary
The FHA Secure is also known as the Short Refinance and is helping homeowners who are faced with the real possibility of foreclosure and also those whose adjustable rate mortgages have reset or are soon going to reset and cause a severe financial hardship. FHA Secure is referred to as the Short Refinance Loan because many times, the amount you owe on your mortgage is not as high as your home value. This results in the lender taking a short payoff similar to a short sale.

Please contact me through this website or email me if you are considering a short refinance.

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Since September 2007 the FHA Secure mortgage loan, also known as the Short Refinance, has now helped just over 200,000 homeowners refinance their mortgages and avoid foreclosure. At this current pace the FHASecure mortgage loan is on pace to help more than half a million homeowners who are “in the right home but the wrong mortgage loan” to refinance their mortgage loan and avoid an emotionally draining foreclosure experience. Most of these homeowners have been trapped in exotic mortgages that have increased not only their mortgage payments but their overall loan balances.

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Bush Administration Plans To Help Homeowners Stay In Their Homes And Avoid Foreclosure

The Bush Administration has created a plan to help familes stay in their homes and avoid foreclosure. The plan allows the FHA (Federal Housing Administration) to provide FHA Home Loans under specific circumstances to help and be “a good safeguard against foreclosure.”

Back in August of 2007 FHA modified it’s refinance policy to allow for homeowners who are behind on payments to refinance into the FHA Secure home loan. Since that time, the FHA Secure mortgage has helped more than 170,000 families. HUD estimates that the average savings for a homeowner refinancing from a subprime mortgage into an FHA Secure mortgage was more than $400 a month.

The plan calls for FHASecure to help borrowers in subprime adjustable rate mortgages who were late on up to three consecutive monthly mortgage payments or at three different times over the previous twelve months. FHA will allow lenders to voluntary write-down outstanding principal mortgage balances and insure, which will provide an equity cushion and protect taxpayers against risk.

Housing and Urban Development Deputy Secretary Roy A. Bernardi expects this will help more than 500,000 homeowners by the end of 2008.

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Is Your Mortgage Loan Keeping You Up At Night?

Do you need help with your mortgage Loan? Are you concerned that there are hurdles keeping you from refinancing or that you may be faced with foreclosure?

It’s The ARMS That Have It

Reality is that home sales have slowed and in many parts of Arizona we are being hit with declining values; which makes it tougher if not impossible to sell a home. To top it off buyers are attracted to the perception of getting a good “foreclosure” or “Short Sale” deal. This is particualarly impactful to homeowners who have Adjustable Rate Mortgages (ARM Loan) that are going up. That’s where the FHA Secure comes in.

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