Foreclosure hope for FHA loans

"Ask us about FHA loans to Remodel for Ve...

“Ask us about FHA loans to Remodel for Veterans” – NARA – 514242 (Photo credit: Wikipedia)

If you’re running late on your payments on an FHA loan you must first contact the lender to discuss the situation candidly. Bring whatever evidence you may have relative to the cause of your problems. The lender can consider restructuring or refinancing the loan to extend its life and lower your payments. If you have had a financial setback such as loss of your job or reduced hours the lender may consider a temporary reduction or suspension of payments.

Another possibility is a one time payment from the FHA insurance pool that will bring your status current. This option is for those who are at least 4 months, but no more than 12 months in arrears. You must be prepared to resume the established payment schedule in your mortgage after you do this. HUD then pays the lender and you must repay HUD. Expect a lien to be filed on your property for the amount paid but no interest is charged and it doesn’t have to be repaid until the house is sold.

Pre-foreclosure” sales are available for those whose property is worth less than is owed on the loan and are at least 2 months delinquent if the house is sold in 3-5 months. Expect your credit score to take a big hit if you do this.

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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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