FHASecure loan program protects Airmen against foreclosure

  • Published
  • By Bill Lawson
  • Airmen & Family Readiness Center
HURLBURT FIELD, Fla. --  The new FHASecure loan refinance program may be perfect for you if you are currently in default as a result of the interest rate on your home loan increasing. FHA is breaking new ground with secure refinance loans that allow homeowners who are defaulting on loans and in jeopardy of being foreclosed upon another chance to keep their homes.

In order to qualify for the secure loan you must be able to show by way of mortgage contract and credit history that you are in default as a result of the increasing interest rate on your home loan. As long as you have an adjustable rate mortgage loan and are having problems making payments now that the interest rate has increased and your monthly payment amount is too expensive, you could qualify for the FHASecure loan program. 

The FHA follows trends in the current mortgage market and sees that homeowners are in need of assistance to keep their homes. As the government works towards changing laws regarding bad lending practices from mortgage loan companies, the FHA is using the secure loan program to help families refinance into affordable mortgage payments and avoid foreclosure. 

WHAT IS FHASecure?

FHASecure is a refinancing option that gives credit-worthy homeowners, who were making timely mortgage payments before their loans reset but are now in default, a second chance with a FHA insured loan product.

WHO IS ELIGIBLE?

To qualify for FHASecure, and include the delinquent loan payments, homeowners wishing to refinance must meet the following requirements:
1. Have a non-FHA insured ARM that has reset;
2. Sufficient income to make the mortgage payment; and
3. A history of on-time mortgage payments before the loan reset.
Homeowners who are current on their conventional mortgages must have sufficient income to make the mortgage payment. 

By refinancing into a FHA insured mortgage, you can expect to pay lower monthly mortgage payments. FHASecure can improve quality of life by helping reduce mortgage defaults and bringing greater stability to local housing markets. 

For more information call 1-800-CALL-FHA (1-800-225-5342), log onto http://www.fha.gov/about/fhasfact.cfm or contact your Airman & Family Readiness Center at (850) 884-5441. Your Readiness Consultant can assist you in putting your personal finances in order.

Tips to Avoid Foreclosure on your home: 

If you are or anticipate having trouble making mortgage payments there are steps you can take to prevent the worst from happening. The secret is communicating with the lender who really isn't anxious to have the home back in lieu of ongoing monthly payments. Don't wait until you are so far behind there's really no way out.

1. Don't ignore the problem. Talk to your lender immediately! Don't wait. The mortgage 'tooth fairy' isn't coming. The further behind you get the harder to get caught up. The lender absolutely doesn't want your house. Their business is money, not real estate. 

2. Never ignore mail from your lender! When your lender starts sending you mail, it will most likely include the suggestion of some options for you. It will also make clear what the lender's options are if you fail to make your regular monthly mortgage payments. 

3. Understand your legal rights. Dig out all your mortgage papers and read everything, especially the fine print. Read them carefully. Contact your Airman & Family Readiness Center and speak with a Readiness Consultant to develop a plan. Knowledge is power and positive thinking will help much more than despair. 

4. HUD-approved housing counselors may help. The U.S. Department of Housing & Urban Development offers free or extremely inexpensive nationwide housing counseling to consumers. They can aid you in understanding the laws in your state, detailing available options and reorganizing your finances. They can also represent you in your dealings with your lender if you need their help. Locate your nearby HUD-approved counselor by calling 1-800-877-8339 or talk to your A&FRC Readiness Consultant. 

5. Work with an A&FRC Readiness Consultant to structure your finances. Spend your money intelligently. Go over your finances carefully and search ways to reduce expenses. There are optional expenses you can do without if you have to: cable TV, memberships, magazines or videos, book clubs, tunes, entertainment, dinners out, etc. Nobody wants to give these up, but when push comes to shove, it's better than being homeless or losing your security clearance due to financial irresponsibility. 

6. Use all assets wisely. Think about what you may do to raise cash or reduce debt. Second car? Motorcycle? Boat? Jewelry? Second or part-time job? 

7. Don't fall for 'foreclosure rescue' or 'foreclosure prevention' scams! There are many unscrupulous people out there who will promise they can solve your problem with the lender and/or can stop imminent foreclosure dead in its tracks. Frequently they take your money and do little or nothing for you. A&FRC Consultants or HUD-approved housing counselors can provide valuable assistance for free. 

Be smart, be aggressive and talk to you lender! Call the A&FRC at 884-5441 to work with a Readiness Consultant and get your finances in order. 

NOTE: Federal Housing Authority sources contributed to this article.