Did you know that on October 1st the FHA launched the Hope for Homeowners Program? Following is a summary of what it about and how it works....

The Hope for Homeowners (H4H) initiative that was part of the July stimulus package began to be implemented on Oct. 1. The H4H program allows troubled homeownerss to keep their home, while enabling lenders to receive a Federal Housing Administration (FHA) guarantee on the loans. Under the terms of the voluntary program, lenders agree to refinance the existing mortgage at 90 percent of the current appraised value and assume the loss on the remaining balance; the new loan is an FHA guaranteed 30-year, fixed rate, fully amortized, fully documented loan; and the homeowner must forgo a portion of the home's future appreciation to FHA when it is sold.

The FHA has posted a list of lenders participating in the H4H program. When contacting the lenders, the FHA is strongly encouraging consumers to also contact their servicing lender and any subordinate lien holders as their participation is vital in order to refinance in a H4 H mortgage. The program is voluntary and servicing lenders may offer different solution for avoiding foreclosure. The FHA plans to update the list weekly. The current list is available at http://portal.hud.gov/portal/page?_pageid=73,7601299&_dad=portal&_schema=PORTAL

Good luck!

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