Paul Dunn (520) 225-0380

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. 

For the complete article from HUD.