Does anyone know reduced mortgages starting October 1st?
Mortgage
Someone at work told me that the government is letting mortgage companies reduce your monthly payments by only charging you the current value of your home now, not of what you paid for it in the past. Can someone send me a link to more info on this?
Tags: Government, Mortgages, October, reduced mortgages
You are describing the voluntary HOPE plan. Not all banks are willing to participate as you are asking them to absorb your loss.
http://www.995hope.org/
What your co-worker was describing is the HOPE for Homeowners Program that was created as part of the The Housing and Economic Recovery Act of 2008. The programs implements guidelines that allows you to refinance into a new FHA loan that is equal to 90% of the appraised value of the home. The company that is servicing your existing loan will have to agree to write off the difference between what you owe and the loan payoff. For this reason, the program is sometimes referred to as a “short-refi” as it is being compared to a “short sale” where a lender agrees to let you sale the home for less than you owe them.
The program is voluntary for your existing lender, so they do not have to agree to do it.
You can find a very good summary for the program as well as a copy of entire text of the law (related to the HOPE for Homeowners Program at http://www.bestfhalender.com/2008/08/hope-for-homeowners/
Someone gave you bad information. There’s no such program as you describe.
Others here have posted information on the HOPE program. Frankly, I believe it’s vastly overrated. Few will be able to qualify for it. That’s probably what you co-workers were referring to. But people will be sorely disappointed when they attempt to use its provisions.