FHA Loan & Foreclosure

Your best bet is to check with your lender(s) and see if they can help you. If your loan is backed by Fannie Mae, then you have a good chance of getting it modified, depending on your debt to income ratio. Also depending on the lender, they are also going up to 105% LTV for most properties, sometimes even higher.

Here's a link specifically for HUD and FHA:

hud.gov/hopeforhomeowners/consumerfaq.cfm

Here's a link for the Making Home Affordable program:

makinghomeaffordable.gov/

Good luck,

Diana

Thanks dianadupre. Also, you said lenders are going up to 105% LTV...what's LTV?

Loan to value.

The loan-to-value (LTV) ratio expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. For instance, if a borrower wants $130,000 to purchase a house worth $150,000, the LTV ratio is $130,000/$150,000 or 87%.

Thanks soaplady. I don't really know what that means in my case but thanks. Some of this stuff is very foreign to me. :-(

You are very welcome.

In your case 105% LTV (loan to value) would help you if for example, your home is worth $100,000 and you owe $105,000, the lender will still refi you even though you owe 5% more than what your house is worth (which in this case is $5000).

If you owe more than 105% of the market value (more than $105,000 in my example) then you would want to try to get a principal reduction, which would reduce the amount of your loan. Some lenders are doing them, but not very many. In this case, say you owe $150,000 and your house is only worth $100,000. The lender (bank) might reduce your loan amount to $100,000 in exchange for partial equity (or ownership) in your home.