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HUD Acts to Avoid Some Foreclosures
- HUD has launched FHASecure, expanding our refinancing product to include credit-worthy homeowners who were making timely mortgage payments before their loans reset, but are now in default. To qualify, homeowners wishing to refinance must meet the following requirements:
- Have a non-FHA insured ARM that has reset;
- Sufficient income to make the FHA-backed mortgage payment; and
- A history of on-time mortgage payments before the loan reset.
- HUD and the Department of the Treasury have assembled a group of lenders, loan servicers, mortgage counselors, and investors, together known as the HOPE NOW Alliance. Without government funding, this private group joined hands to assist subprime borrowers who can afford current, starter rates on subprime loans, but are unable to make the higher payments once their interest rates reset. HOPE NOW members provide relief to these borrowers in one of three ways:
- Refinancing an existing loan into a new private mortgage;
- Moving them into an FHASecure loan; or
- Freezing their current interest rate for five years.
- HOPE NOW has also launched a national hotline for telephonic foreclosure prevention counseling. You can reach the hotline at 888-995-HOPE.
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