Arm's Resets Threaten Home Owners-Help is Here

The problem is that many home owners that got into their property with teaser rates are now facing large monthly increase as the ARM mortgage rates reset to market rates. The Govet has begun its program for those who have good credit and were timely with mortgage payments, but now cannot make the new higher monthly.

According to the HUID site "HUD's Federal Housing Administration (FHA) will help an estimated 240,000 families avoid foreclosure by enhancing its refinancing program effective immediately. Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing."

To qualify: eligible homeowners must meet the following five criteria:

1. A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset;
2. Interest rates must have or will reset between June 2005 and December 2008;
3. Three percent cash or equity in the home;
4. A sustained history of employment; and
5. Sufficient income to make the mortgage payment.

For more information: Call 1-800-CALL-FHA or visit FHA or HUD. For a list of your local homeownership center or a HUD-approved housing counseling center.

Thanks for Reading
Howard Bell
Your Property Path