FHA Secure is an FHA program that you should know about. It was specifically designed to tackle some of the largest problems in the housing industry today and it has done well at accomplishing this, thus far. While I believe there is much more work to do, FHA Secure is a strong program designed to provide people with assistance.

Let’s look at some numbers.

The FHA Secure program is now a year old. During the last year, this program has helped refinance the mortgages of more than 325,000 Americans. That is a considerable number.  The goal of the program is to help at least 500,000 people y the end of 2008 and it appears to be on track to accomplish that.

FHA Secure can help you, too.  This is not a new loan and it is not something that is a free ride. Rather, it gives help to those who need to get into new loans the opportunity to do so. Many homeowners have the ability to pay on their mortgages but may have fallen behind and cannot get caught up. Others have had adjusted rates on their ARM loans which has caused them to fall behind or struggle. These people can pay for their loans with help getting into a better loan. FHA Secure seems to be just what is necessary to accomplish this.

FHA Secure lends help to those needing to refinance their home loans but have fallen behind on their mortgage payments.  Prior to the start of the program in August of 2007, many people were losing their homes after just missing a few payments or being late, after their rates had adjusted and they suffered from an initial shock of that adjustment.

In July of this year, FHA Secure also helped many people that were already at the default stage of the foreclosure of their homes. By expanding who they could help, the program expanded the opportunities for good Americans to remain in their homes.

The program is a good one and will continue to provide this type of help for the months ahead. If you find yourself in this type of situation, contact an FHA loan specialist to get help. They will work with you to determine if your loan situation helps you to qualify for this readjustment. Many American homeowners are able to find help here and can stay in their homes as a result.

As I went through a list of fabulously interesting topics to write about, I realized that FHASecure has been in the news.  FHASecure is a program put in place by the Bush Administration in August of 2007.  The program has a design to help struggling homeowners to get help in refinancing their mortgages so that they could get out of the hands of foreclosure.

The Bush Administration released information on the program last week.  They said some 200,000 homeowners have been able to refinance since the program’s startup and during that time, many of the subprime loans people could not afford refinanced into affordable home loans.  The program is not for everyone; in fact it is designed only for those that are at the bottom of the line, have subprime loans and need to refinance quickly to stay in their homes.

The FHA announced that it actually has refinanced 100,000 of those loans in the past three months (February through April.)  Struggling homeowners right now can still get this type of help.  The FHA is likely to help another 500,000 homeowners this year alone to help get out of subprime loans and into loans they keep them in their homes.

Getting Help

If you are one of the many struggling homeowners, I encourage you to reach out to the FHA representatives who have it in their ability to help many in struggling positions.  There is some controversy over who qualifies for the FHASecure program.  Originally, the program had a design to help those who were already delinquent in their subprime mortgages and were struggling with the resets of those loans.  However, some believe there has been a shift in that many of those qualifying for FHASecure are those that are trying to avoid programs and that want to get into the lower costing loan.

Some officials from HUD and the FHASecure program have said that this is a good thing in that these borrowers receiving help are a better credit risk than those already behind. 

The Bush Administration announced some changes as of May 7^th in the hopes of avoiding even more worry of the changing focus of the program.  The guidelines have expanded so that they now include more borrowers who are delinquent which have had a mortgage reset recently and have missed their payments due to it.

Other requirements also have had introduction in the way of late payments on record.  Those homeowners with a Loan to Value ratio that is 90 percent or less will be able to have a 90-day late payment on their record prior to the rate reset and can still qualify for FHASecure.  In the past, this wasn’t clearly outlined.  Additionally, all borrowers behind on their mortgage payments and that have reset adjustable rate mortgages and have a 60 day late payment on their record are also still able to qualify.

What To Do

If you are struggling with your subprime loan, for any reason, or believe you will be struggling for it in the short term, the FHASecure program may be able to help you.  Talk to lenders to find out what can be done to keep you from falling behind.  While the government is working to include more homeowners that are on the verge of missing payments and entering foreclosure, they are still heavily working to improve the situation for those that have already had resets of their loans.

Of course, FHASecure has a long way to go, and it most definitely can be helpful to some.  For other homebuyers, it may be possible to refinance into a standard new FHA loan through a standard lender. 

We all know that a lack of knowledge can lead to poor choices, uninformed decisions that lead to long term consequences. What is even worse is when businesses choose to prey on those that are uninformed for their own gain. From what I read today, there was a report released by the United for a Fair Economy (UFE) advocacy group that stated subprime mortgages, home loans issued to Americans with scant finances, were “ruthlessly hawked and that a “solid majority of subprime loan recipients were people of color.”

It is sad that in the year 2008, that we are continuing to deal with the issue of minorities being taken advantage of instead of being helped and educated. It is evident that this crisis has ruined communities as well as families and is continuing to do so. Is there a light at the end of the tunnel? Who could actually say because mortgages are continuing to adjust for those that got the adjustable rate mortgage. Some will be fortunate to be able to qualify for the FHASecure but everyone will not fall into this category.

For those that do not qualify for FHASecure, they have to weigh what other options are available. The report estimated the total loss of wealth “for people of color” including Latinos to be between 163 and 278 billion dollars for subprime loans taken out during the past eight years. What does that say to you? To me it says let’s keep the poor, poor and the wealthy wealthier thinking they will not know the difference. Surprise, this is out in the open and the nation knows what has happened.

As a matter of fact, some of these same lenders probably are no longer in business because they could not operate in this morning. So it affected them as well as the people they were taking advantage of. I do believe and advocate more should be spent on educating people prior to home ownership so that it is a benefit for all parties and not just the lender.

The effect this is having on communities is astronomical. Having a lot of foreclosures in a neighborhood also brings down property values. I have seen houses staying on the market as long as a year or more without even a showing. Then owners are taking their house off the market. I have heard that some of the houses that were foreclosed on being absolutely torn apart when the new owner moved in. They spent a lot of time repairing the homes to make them livable which ends up costing money.

Something I recommend for anyone in the housing industry, whether realtor, mortgage broker or even housing counselor increase the amount of information you are giving to your client. This is going to make the difference between a dream for them or a nightmare. I continue educating people as often as I am asked. I do not want anyone struggling and lose their dream of home ownership. Sure at the end of the day it is their choice, but have you done all you can do to give them solid information. This could be someone in your family seeking information.

Dr. Taffy

Over the last couple of weeks, I have steadily been keeping up with the news on mortgages and what is happening in the industry. Let’s give a brief recap because no matter what you read, you are going to find that many copies are returning to offering FHA products as a part of their equation. I honestly cannot blame them because there are so many people dealing with situations that they didn’t even know they would face. Consequently, they need viable options and FHA provides realistic solutions.

As recent as yesterday, I read that Sun West Mortgage Company has launched a web-based training series, its free and on comprehensive FHA and reverse mortgage. As a person that has taught web-based training, it is a huge advantage and allows many different people to attend that otherwise might not have the opportunity.

I must applaud them for being one of the companies that steps out and offers this program in another format. Mortgage professionals can schedule themselves for the class and even without knowing the details of this class; I do believe that it should be researched. Find out the ins and outs of the different classes and how it can benefit your career as you are in a position to help many homeowners.

I read another article that stated Green Valley Mortgage in Bloomingdale recommends if you are a first-time buyer to consider an FHA mortgage. The senior loan consultant for Green Valley Mortgage outlined some of the requirements for an FHA loan. When I read there are some down sides and one of them being that the mortgage must be $275,200 or less it made me want to stand up and say — choose a starter home and do not focus on your dream home. You will set yourself up for success versus failure if you begin with a starter home. Depending on the area where people want to live, you should be able to find a starter home within the parameters of an FHA mortgage.

The next topic that continued to be discussed was reverse mortgages. Understand that the reversed mortgages are being offered to the older home owners. What I wasn’t aware of and you know how much I love learning is there are three types of reverse mortgages. The types are FHA-insured, lender insured and uninsured. As with anything, the parameters are different for each. Research, research and more research. Even with an older home owner, especially if this is an elderly parent, I would also recommend they in particular talk this option over with an adult child or even a lawyer to make sure that you are not being taken advantage of, nor going to lose your shirt because you did not foresee a situation.

Whether you are a first-time buyer, someone who seeking options to avoid foreclosure or even an older home owner looking at options, FHA offers many solutions that should be considered. If you do not fit into one category that does not mean another option is not available. As I have stated throughout, do your research and find out what is best for you. It is a new year and let’s make better decisions.

Dr. Taffy Wagner

A few blogs ago I shared with you about the FHA Secure loan. After doing some extensive reading this morning based on the unveiling of the new plan, I found that the FHASecure has already begun helping people. According to a press release that I read dated on December 4, 2007 it stated that tens of thousands of homeowners are refinancing their exotic subprime loans with HUD’s new government backed mortgage product. HUD Secretary Alphonso Jackson announced that more than 33,000 borrowers have already refinanced their subprime home loans with FHASecure. The FHASecure is a government-insured foreclosure avoidance initiative created in September.

I was very pleased to hear this because for each one of those individuals that are helped, that is going to change their lives forever. I can imagine some of those people thinking they would not get any help and there FHASecure was. The release shared that there was an additional 20,000 in the pipeline for approval this month bringing the total to more than 53,000 in a four month period. This says to me, that if one door does not open, continue to knock and the correct door will open. You will be able to get the appropriate help. You have to seek it though.

I don’t mean to get on a tangent here but I must share this discussion I was having with a friend. We were discussing how there is so much information out there to help people and in different cultures you are taught that you do not ask for help. How do you advance in life, business or education if you do not ask for help? No one can do it alone. I want to caution you and recommend that when you are seeking help, that you verify what people are telling you. Do not take their word for it, do your due diligence and background checks. Meaning research the information, talk to more than one person. When I get the same answer from two or three people then I know it can’t be wrong. Take your time and get the best solution for you and your family.

FHASecure could be an option for you. FHASecure enables homeowners who have a history of on-time mortgage payments under their original interest rates, but missed payments after their rates reset, to refinance into FHA’s mortgage insurance program. Families with high-cost mortgages and mortgages that are due to reset, but are still current on their loan, also continue to refinance through FHASecure.

The release continued to share that as a result of extensive nationwide consumer outreach, more subprime borrowers recognize they have a choice and are turning to FHA for assistance. FHA’s toll-free call center has received more than 137,000 calls over the past three months. Nearly 900 FHA-approved lenders around the country are participating in FHASecure by helping families refinance with home loans insured by FHA. Don’t prolong what could be your answer to a very stressful situation.

Taffy Wagner

Foreclosure—Colorado, Texas, Michigan, Massachusetts and more. Over and over when you see stories on the news, probably even if you look in your local newspaper, there are stories of foreclosure. I can’t even tell you how often the stories are happening here because for a period of time we were number one in the nation in foreclosure. We are not number one but remain in the top ten.

What are the options for people facing foreclosure or seeking to avoid foreclosure when they first notice there is trouble? Do you believe that everyone should be given a second chance even in the housing industry? I am of the mindset, that people should be given a second chance. Let’s face it; the first time anyone purchases a house, they might not have been aware of all the financial obligations that encompass home ownership. I’m going to list some of the options that I found.

Option 1 – There are foreclosure conferences and foreclosure seminars to prevent foreclosure. I found there are some Mayor’s meeting about foreclosure at a meeting in Detroit. When foreclosure happens, it affects more than that one family. Especially when it reaches the magnitude that it has already and the worse part is, it’s not over yet. So what are people in decision making positions to do? Do you believe there is “Wisdom in a multitude of counsel?” I have to tell you I do. Or do you like the saying “two heads are better than one?” Regardless of which saying you like, it says you cannot do it alone. Same for the person that is facing foreclosure, get some help.

One of the options that will be discussed at the Detroit foreclosure article that I read is FHA Secure. Since it didn’t have enough detail for me I took it a step further and did some research. Our readers need to know right. Seems back in August of this year, a new loan product called FHA Secure Loan was going to come to the rescue of some not all homeowners who were unable to refinance at that particular time and help stop foreclosure for many homeowners who struggled with adjustable rate mortgages. I surmise from the previous Detroit foreclosure article I read, this program will be discussed and those who can qualify will be given this option. There are 80,000 that this loan is supposed to be laid out for. What happens to the other million and something that need help?

What is a second option for people that are facing foreclosure or trying to prevent a foreclosure from happening? One of the things I would recommend is if at all possible, downsize in housing before you get into a foreclosure situation. I have heard of people that have tried to get out of their housing situation only for the bank not to work with them or help them. If you can see that there are situations arising that will prevent you from paying your mortgage – decide what your options are. I am sure you realize by now, I believe in dealing in solutions not problems. There have been too many times when people are overwhelmed and emotional about the problem and cannot see options. Let’s share options for those that are reading that potentially could be in this situation and are embarrassed.