As with all matters with foreclosure, there is no assurance that you will be eligible for this plan or that your lender will be able to extend this as an selection in your unique situation. Before you get your hopes up that this might work for you and help with foreclosure in your situation, there are some things you should know.
A mortgage insurance premium will be payable at once. And each year after that you must pay one as well. There is a proviso for equity and appreciation sharing with the federal government. So basically, any equity that you get in your home will have to be shared with the government. So unless you desire to pay the government half of the equity that you make in your home when you sell it, this is not a effective long-term answer for you. There are also no other loans permitted on the property for the length of this loan unless that loan is being used purely for property maintenance. So no home equity loans to help you pay off any of your other bills.
The other area you must be mindful of if you desire to utilize this as a path to help with foreclosure is that there are some very tight necessaries for even making this kind of loan. The loan had tohave been started on or earlier than January 1, 2008.The mortgage payments that you make at this time has to be more than 31% of your gross monthly income. You must not have by choice not made your payments. And you cannot own any different homes or other sorts of residential holdings.
Does this not appear like a good option to help with foreclosure to you? It could not be depending on your situation. It does have good points. Being able to retain your home tops the list. Having payments that are easier for you to afford is also another good point. For those of you that have ARM loans, this is a means to get into a fixed rate loan. Another good feature of this plan is that you will right away have a 3.5 percent equity in your house. This may be a fantastic good point if at this time you owe more on your house than what it is valued at. If that is the situation for you, be conscious that your mortgage company could not even extend this as an choice. They hurt financially with that and most lenders are not fine with that and so will not extend this to you as an option.
