300 Billion to be Designated for Troubled Homeowners

Some borrowers may find relief soon from a new bill that will allow current or defaulted homeonwers to refinance with a FHA loan. The current lender must write down the loans that are underwater to 90% of the current appraised value so for a 200,000 home purchased in 2005 that is now appraising for $165,000 would be reduced to a new principal balance of about $148,500. The borrower still has to qualify and will be required to pay a mortgage insurance premium. The good news is FHA loans are still low and the new payment should provide a considerable savings. All good things are not without a catch however, should the homeowner sell or refinance within a year they would be required to give 100& of any profits realized. The amount is reduced by 10% for each year until year 5 where it will remain at 50% of profits earned. Also the current loan servicer has to agree to the terms and the loan write down has to be the best option for them over the expense of proceeding with a foreclosure. Should you see this as an option contact your servicer. Contact us at www.Trinity1Fn.com read more about this at http://money.cnn.com/2008/07/23/real_estate/housing_rescue_guide/index.htm