Posted on: 25th Jan, 2010 01:51 pm
The Federal Housing Administration (FHA) announced last week that it is willing to assist borrowers prior to their becoming delinquent on their mortgages.
What will be required from borrowers who request assistance is to document that their difficulties arise from a reduction in income from the loss of a job, a cut in hours on the job, a pay cut, or a decline in self-employment income. Also, if there's been a death or disability in the family, that may allow some borrowers to qualify for assistance.
So, if you have an FHA mortgage, and you can foresee difficulty in making payments as a result of one of the circumstances noted, contact your servicer and ask about this new policy. You may find that you'll qualify for, at least, a temporary reduction in payments; and long-term, that it might end up being a permanent reduction.
What will be required from borrowers who request assistance is to document that their difficulties arise from a reduction in income from the loss of a job, a cut in hours on the job, a pay cut, or a decline in self-employment income. Also, if there's been a death or disability in the family, that may allow some borrowers to qualify for assistance.
So, if you have an FHA mortgage, and you can foresee difficulty in making payments as a result of one of the circumstances noted, contact your servicer and ask about this new policy. You may find that you'll qualify for, at least, a temporary reduction in payments; and long-term, that it might end up being a permanent reduction.
It is really nice to note that the Federal Housing Administration (FHA) is willing to assist the homeowners so that they would be able to save their property. There are a large number of people who are facing severe issues to pay off their loan due to reduction in income or a cut in hours on the job. Such borrowers would now be able to apply for assistance if they have FHA loans.
Hi George,
It's no doubt good to hear that the FHA is willing to help delinquent borrowers to save their homes. But I believe like many other policies and programs, this too will depend on an individual lender. So, the success of such an initiative will rely primarily on the lenders. For instance, the Home Affordable Modification Program started by the Govt., did not have much success in the initial stages as the lenders were not quite proactive in offering modification help to the borrowers. So, it's yet to be seen how the lenders respond to this new FHA policy of helping delinquent borrowers to save their homes.
It's no doubt good to hear that the FHA is willing to help delinquent borrowers to save their homes. But I believe like many other policies and programs, this too will depend on an individual lender. So, the success of such an initiative will rely primarily on the lenders. For instance, the Home Affordable Modification Program started by the Govt., did not have much success in the initial stages as the lenders were not quite proactive in offering modification help to the borrowers. So, it's yet to be seen how the lenders respond to this new FHA policy of helping delinquent borrowers to save their homes.