How to Get Out of Foreclosure With a New FHA Loan Program

The Federal Housing Administration [FHA] will require that you supply (the loan officer handling your file) specific information to get your new loan approved for up to 90% of the properties current value. All consumers will be qualified for a 30 Year Fixed rate - FHA loan program. No other loan programs will be considered.

FHA will require that your current lender accept the terms and conditions of the new loan for which FHA will accept and fund on your behalf (if you are approved). This means that the current lender may have to take a loss on the property equity, costs of attorney fees, title fees or charges or any other fees tied to the current or pending foreclosure. An subordinate lenders will also take a loss, unless they purchase the primary lien holders loan (this action seldom happens).

Here are some specific details of the FHA loan program. Consumers must adhear to the following:

* Their mortgage must have originated on or before January 1, 2008;
* Their mortgage debt-to-income must be at least 31 percent;
* They cannot afford their current loan;
* They did not intentionally miss mortgage payments; and
They do not own second homes.
* $550,440 maximum mortgage amount
* Extinguishment of any subordinate liens.
* An FHA approved appraisers to conduct new appraisal.
* 30-Year, fixed rate mortgage loans, only!

Each loan applicant must supply documentation to prove that they are having challenges making their current housing payments with the current lender. An approved FHA licensed loan officer will assist each applicant in the process of getting approved under this loan program.

Have the following items ready when getting together with the loan officer:

* Minimum of 3 months bank statement, all pages.
* Minimum of 1 month of pay checks stubs or proof of income.
* Copy of your current mortgage lender payment coupon(s).
* Copies of all current debts showing minimum payments for each.
* Copies each of your last 2 years tax returns, all pages.
* Copies of "proof of liquid assets", you own.

Note: FHA may require that you provide additional information needed to get approved. The loan officer will instruct you on what is needed.

You will be required to pay for an appraisal to determine fair market value of your home. The customary cost of an average FHA appraisal is with the range of $300 - $450.

Be sure to tell your loan officer about any written or oral communications between you and your current mortgage lender. Allow a seasoned loan officer to communicate with your mortgage lender. Communication is always good between your current lenders to ease any concerns between all parties to the transaction.