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Mortgage And Foreclosure Problems: Available Help

Do you have mortgage or foreclosure problems? There is help available.

Distressed homeowners now have additional programs to help them deal with their mortgage or foreclosure problems. Below are some examples of the help available:

1. There is now additional governmental assistance for those homeowners who are unemployed and are having trouble making their mortgage payment.
The Obama administration has expanded assistance to unemployed homeowner by requiring that mortgage servicers for FHA insured loans allow some (qualified) unemployed homeowners to miss up to a year of mortgage payments while they search for a job. The current hiatus period is four months. This program extends that to a year since approximately 60% of the unemployed are still unemployed at the end of 3 months. Missed payments would either be tacked onto the end of the mortgage or in some instances forgiven altogether.

But this program only applies to government insured loans.

2. HAMP 2 may allow some homeowners to refinance up to 125% of their home value
Under modifications to this program it applies to FHA insured properties, includes rental properties and can be used for more than one property. Perfect credit is not required and in some instances great credit can be a hindrance to qualification. If you are current on your mortgage, owe less than 125% of the value of your home and want to lower your interest rate, check with a mortgage broker to see if you qualify for HAMP 2 refinancing.

3. You may be entitled to relief under the February 2012 Foreclosure Settlement
If you do NOT have a Fannie Mae or Freddie Mac mortgage and your lender is Wells Fargo, Bank of America, JP Morgan chase, Ally Financial or City Group, then you may be eligible for relief under the settlement reached Feb 2012 by the State Attorneys General of 49 states, including Florida. You may be eligible for a principle reduction if you are behind in your payments and are underwater, for an interest rate of 5.25% if you are current but underwater and for a cash payment of up to $2,000 if you lost you home to foreclosure between January 1, 2008 and December 31, 1012.

Sherri K. DeWitt
DeWitt Law Firm, P.A.
March 2012