Refinance Your Mortgage In Default With FHA

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If you have a current mortgage and are in default on your loan or it is about to reset, then is important to know that the Federal Housing Administration is now offering to help Americans with a program called FHASecure.


This program will help secure refinancing to credit-worthy homeowners, who were making timely mortgage payments before their loans reset but are now in default. This can give you a second chance with a FHA secured loan to get your mortgage out of default, so you can keep you home and avoid foreclosure. FHASecure is a temporary program that is currently set to expire December 31, 2008.

The FHA provides mortgage insurance on loans made by FHA approved lenders throughout the United States and its territories. FHA insures mortgages on single family, multifamily, manufactured homes and healthcare facilities. It is the largest government backed mortgage insurer.

To qualify for FHASecure, and include the delinquent loan payments, homeowners wishing to refinance must meet the following requirements:

1) Have a non-FHA insured ARM that has reset;
2) Sufficient income to make the mortgage payment; and
3) A history of on-time mortgage payments before the loan reset.
4) Homeowners who are current on their conventional mortgages must have sufficient income to make the mortgage payment.

By refinancing into a FHA insured mortgage, you can expect to pay lower monthly mortgage payments and get a fixed APR.

You will want to compare the different terms offered by different lenders because FHA does not regulate or set the interest rate or discount points that a lender can charge a borrower. You (the borrower) and the lender work out the interest rate and any discount points. The lender can also charge you customary and reasonable closing costs necessary to close (finalize) the mortgage.

Only lenders approved by FHA can take an application, process and close an FHA loan. There are thousands of FHA-approved lenders such as banks, mortgage companies, mortgage brokers, state finance agencies and credit unions. Search online for your nearest FHA approved lender, or for more information phone 1-800-CALL-FHA (1-800-225-5342) or visit their website at FHA.gov.