The HOPE for Homeowners program was created by Congress to help those at risk of default and foreclosure refinance into more affordable, sustainable fixed rate loan. The program is effective from October 1, 2008 to September 30, 2011 for homeowners in Phoenix, AZ.
As many as 400,000 homeowners could possibly avoid foreclosure through this program over the next few years. If you are having trouble making your mortgage payments on your Phoenix home, HOPE for Homeowners may be able to help you or someone you know, by refinancing the existing loan into a new 30-year fixed rate loan with lower payments.
Qualifications for the HOPE Program
- The existing mortgage was originated on or before January 1, 2008;
- Existing mortgage payment(s) as of March 1, 2008 exceeds 31 percent of the borrowers gross monthly income;
- The homeowner did not intentionally default, does not have an ownership interest in other residential real estate and has not been convicted of fraud in the last 10 years under Federal and state law; and
- The homeowner did not provide materially false information (e.g., lied about income) to obtain the mortgage that is being refinanced into the HOPE for Homeowners mortgage.
Negotiating the HOPE Program
If the lender refinancing the loan does not hold the senior mortgage lien, it will need to secure an agreement from the existing lien holder to waive all prepayment penalties and default fees on the existing loan and accept the loan proceeds from the HOPE for Homeowners loan as payment in full. The loan amount for the new HOPE for Homeowners loan cannot exceed 90 percent of the current appraised value of the property.
The lender will require existing subordinate mortgage lien holders to forgive all subordinate liens on the subject property. To entice subordinate lien holders to participate in the negotiation process and release their liens, FHA has the authority to share its future appreciation entitlement with them.
Contact The Krushinsky Team at 602-695-7575 or david.krushinsky@wjbradley.com for more details on this, and many other programs.
