Hope For HOMEOWNERS: H4H in San Diego

They say the only thing that stays the same, is change. Well, this is certainly true in the North San Diego Real Estate Market! Forclosure and Short Sales are dominating our market. Sales are up, prices are down. This is largely attributed to the falling prices and positive cash flow opportunities for investors.

What if you DON'T Want to sell? What if you want to keep your home? Well the help is slowly starting to trickle in. Here's a break down of the Hope For Homeowners initiative that took effect on October 1, 2008.

The Hope For Homeowners (H4H) initiative that was part of the July stimulus package began to be implemented Oct. 1.The H4H program allows troubled homeowners to keep their home, while enabling lenders to receive a Federal Housing Administration (FHA) guarantee on the loans. Under terms of the voluntary program, lenders agree to refinance the existing mortgage at 90 percent of the current appraised value and assume the loss on the remaining balance; the new loan is an FHA guaranteed 30 year, fixed-rate, fully amortized, fully documented loan; and the homeowner must forego a portion of the home’s future appreciation to the FHA when it is sold.

The FHA has posted a list of lenders participating in the HOPE for Homeowners program. When contacting the lenders, the FHA is strongly encouraging consumers to also contact their servicing lender and any subordinate lien holders as their participation is vital in order to refinance into a H4H mortgage. The program is voluntary and servicing lenders may offer different solutions for avoiding foreclosure. The FHA plans to update the list weekly on Fridays. The list is available at http://portal.hud.gov/portal/page?_pageid=73,7605762&_dad=portal&_schema=PORTAL

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Everything you need to THRIVe in this market, go to:

http://www.MarcVonMusser.com

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