Foreclosure Help: HUD’s “Hope for Homeowners” Program

October 3, 2008

On October 1, 2008 a new HUD program called “Hope for Homeowners” went into effect.

It is a new program for borrowers who are at risk of default and foreclosure. The program provides new, 30-year, fixed rate mortgages that are insured by the Federal Housing Administration (FHA).

The program aims to help homeowners refinance their mortgages into more affordable loans with more affordable payments.

This is a voluntary program, so a consumer’s lender must agree to participate. Some lenders are more willing to participate than others.

And, there are costs associated with the program. Some of these costs can be significant.

Homeowners should contact their lenders to find out if they are eligible to participate in the program. But, you may be eligible if:

The home is your primary residence,
You have no ownership interest in any other residential property, such as second homes,
Your existing mortgage was originated on or before January 1, 2008,
You have made at least six mortgage payments,
You are not able to pay your existing mortgage without help,
As of March 2008, your monthly mortgage payment was more than 31 percent of your gross monthly income,
You have not been convicted of fraud in the past 10 years,
You have not intentionally defaulted on debts, and
You did not knowingly or willingly provide false information to obtain your existing mortgage(s).

For a more detailed discussion of the program, see the following link:

HUD Hope for Homeowners Consumer Fact Sheet