A new bill was just signed by President Bush on July 30th which includes a provision for foreclosure rescue for homeowners in your position. This legislation provides for the development of a refinance program for homebuyers with problematic subprime loans. Lenders will write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of the current appraised value which for many homeowners will be much less than the amount they currently owe due to the declining market over the past several years. Conditions of this program are that borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide and this Hope For Homeowners program will be effective on October 1, 2008. You can get more information on the specifics to see if you will qualify by going to the following website:
If you do qualify, then I would contact your current mortgage lender and let them know you will be wanting to proceed with the Hope For Homeowners Program come October.
Try to hang in there until then!
Lorraine Bennett, REALTOR
(813) 716-3997 Direct
Either have an attorney, a realtor, mortgage broker, a family member or friend (calm & relaxed) fax over a third party authorization and usually within 3 days, thay can make the call. The longer you have owned your home, the better your chances are of the lender making an arrangement for keeping your home that will satisfy you. Be reasonable and believe they are there for you. You will most likely need to make a good faith payment, one full or a partial and be very careful of what you promise!! Once you have the foreclosure lifted and you are working on your arrangements, if you were already scheduled for sheriff sale, they can reschedule it immediately.
Right now, most banks are adjusted to what has happened to this housing market and are more flexible in the terms because they want to keep as many good loans as possble. They do not want your home in foreclosure, they do not want you to file bankruptcy.