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Exciting News from HUD Regarding ARM Mortgages

Many of you are fretting over the impending significant adjustment (reset) in your Adjustable Rate Mortgage (ARM). Or maybe you have already encountered your reset date and are now struggling to make your new payment. Maybe you are facing the very real possibility of losing your home or facing potential bankruptcy.

Don’t panic. Assistance from the Federal Housing Administration (FHA) may be available for you in the form of the new FHASecure mortgage safety net program, which could allow an opportunity to refinance into a prime-rate FHA Mortgage. This program is UNPRECIDENTED and it could potentially save you thousands.

What if I’m already behind on my mortgage? It is always important to make every effort to continue to make your mortgage payment. This FHA program is SPECIFICALLY available for those of you who are behind on your mortgage payments as a result of your ARM resetting.

But I’m already more than one payment behind. What do I do about my late payments? If you have sufficient equity in your home you may be able to include late payments that occurred after reset, into your new mortgage regardless of how many payments behind you may be.

But when I add my late payments to my loan balance, the total exceeds the value of my home. Does this make my situation hopeless? Not necessarily. We may be able to meet with your current lender to discuss your options. But we need to speak with them as soon as possible.

I heard there is a limit on the amount of my new mortgage. What is my limit? FHA does impose loan limits based on where you live, your income and the amount of your monthly debt payments. You’ll need to contact us for more details. (click here for regional loan limits).

What if I’m not late but my ARM is scheduled to reset soon? If you paid your mortgage and your other debts on time for the prior 6 months, you may be eligible for FHA’s standard refinance program.

What about my other debt? It is CRITICAL that you pay your ALL of creditors on time for at least six months prior to refinancing, and make your best effort to pay your mortgage.

THIS IS AN UNPRECIDENTED FHA PROGRAM BUT IT IS ONLY TEMPORARY AND IT EXPIRES SOON. Your options diminish with time. Please, don’t wait to apply.

For more information you can also contact the HUD Counseling Center.