President Bush announced the FHA (HUD) to save the current mortgage crisis last week (8/31/07). The FHA will implement a new program – FHASecure, hopefully to help some 240,000 homes in foreclosure cases. The following are criteria which must qualified in order to apply with FHA:
- A history of on-time mortgage payments before the borrower’s teaser rates expired and loans reset.
- Interest rates must have been or will be reset between June 2005 and December 2008.
- 3% cash or equity in the home.
- A sustained history of employment.
- Sufficient income to make an FHA mortgage payment
Not everyone fits this program and can apply. Please contact 1-800-CALL-FHA or it’s website.
Also if you happened to be in the foreclosure situations, please be aware of the IRS property “loss” tax. You may get a 1099C form for the year forclosure sale happened. For the part of that existing loan is sold under or less than the bank balance book. – It’s consider an income to you for that year. It’s not going to be an easy one. Consult your CPA or find a professional financialist to explain it to you.