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If you owe more than your home is now worth and/or you are having trouble paying your mortgage, don't wait until you miss a payment and risk foreclosure. There are possible solutions for you.
One solution is to refinance to safe FHA financing. This new refinancing option is through the FHASecure program. This program’s goal is to offer borrowers unprecendented foreclosure prevention. This refinancing option is available to borrowers who meet the five following criteria:
- a history of on-time mortgage payments (before teaser rates expired and loan rest)
- a sustained history of employment
- proof of sufficient income to make the new mortgage payments
- interest rates that have or will reset between June 2005 and December 2009
- has at least three percent cash or equity in the home
- a sustained history of employment
- proof of sufficient income to make the new mortgage payments
- interest rates that have or will reset between June 2005 and December 2009
- has at least three percent cash or equity in the home
Another possible solution is a short sale.
In a short sale the lender agrees to receive less than the amount owed
in exchange for the sale of the property. A short sale has advantages
over a foreclosure to both you and your lender in the following ways:
1) It may not impact your credit
2) It tends to cost less to your lender
3) It doesn't take as long to process
4) It is not as emotionally stressful
1) It may not impact your credit
2) It tends to cost less to your lender
3) It doesn't take as long to process
4) It is not as emotionally stressful
