Foreclosure Assistance

A few weeks ago there was a front page article in the Daily Herald about foreclosures. Since that time I have been contacted by two mortgage institutions about letting residents know about FHA loans which were quite common before the sub prime rush of mortgages in the last few years.

With the near collapse of the sub-prime market, these two gentlemen believe that stable, fixed rate, government backed FHA loans might be a solution to consider for refinancing.

I have met with both gentlemen and they make persuasive cases about the process, some of the main points are listed below:

• Credit scores are not considered
• Expanded ratios available
• Reserves not required
• High loan to value (LTV's) allowed (97%)
• Gift funds allowed towards the 3% required equity and funds to close
• Can be combined with other non-profit down payment assistance programs.
• Collection accounts OK
• Borrower must have had made timely mortgage payments for the last 12 months or the last six if within 1 month of rate adjustment on an ARM.
• Fixed rate and adjustable rate options available.
• Favorable rates and MI factors
  

Of course the loan has to have at least one strong leg that the underwriter can lean on. Current loan limits are $275K, but there is legislation passing in front of congress that would raise the loan limits to over $400K.

I am writing both our United States Senators and our Congresswomen to support the legislation that would raise the loan limits to over $400K.

The two companies are as follows.
Enterprise Mortgage-- Steve Lessman
Perfect Mortgage-- Al Villasenor

Please contact them directly using the links I provided. I would remind everyone that what I am doing is offering you a venue to find a potential solution to a problem.