If you have an FHA mortgage and are having trouble making the payments, you may now be able to get help from the government. FHA stands for the Federal Housing Administration, part of the Department of Housing and Urban Development (HUD). FHA provides mortgage insurance on loans made by FHA-approved lenders for home purchases with low down payments. As of August 15, 2009 HUD has made FHA mortgages eligible for their Making Home Affordable program.
It’s called the FHA-Home Affordable Modification Plan (or FHA-HAMP) and it’s designed to permanently reduce monthly payments. HUD Secretary Shaun Donovan announced, “We’re bringing another important tool to the table to help struggling families who are desperate to keep their homes. Tens of thousands of FHA borrowers will now be able to modify their mortgages in the same manner as so many others who are taking advantage of the administration’s Making Home Affordable program.”
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Comments
5 Comments so far
Sheryl Lee
Please tell me what course of action to take when the bank that
holds my FHA mortgage refuses to be a part of the
Making Homes Affordable plan?
Sheryl Lee
10901 Stilton Drive
Chester, Va. 23831
I made application for this program in April; have used credit
cards excessively due to fluctuating income and have not been
able to even pay my IRS taxes in excess of $1100…..because
of $1292 mortgage……which is more than my Social Security and
retirement income combined…….let alone living costs!
Joanne Gaskin
I noticed that from one of your previous blog posts that you’ve already contacted Home Preservation Foundation (hpf) and that one of their representatives contacted your loan servicer on your behalf. Also, the response from your loan servicer stated that they are not working with HUD’s Making Home Affordable program (MHA) for FHA loans.
First, I applaud the fact you’re in contact your loan servicer! Remember, HUD’s MHA program for FHA loans just rolled out in mid- August, so be patient - the situation at your lender may change. Do stay in touch with the hpf at 888-995-HOPE (toll free). They may be able to help beyond calling your loan servicer. A loan modification is not the right answer for everyone.
Also call Money Management International (MMI), a nonprofit community service organization that provides free credit counseling and help with debt management at 866-889-9347 (toll free).
Finally, contact HUD’s National Servicing Center. Their web page, http://nls.gov/offices/hsg/sfh/nsc/nschome.cfm, states: “The goal of HUD’s National Servicing center is to help FHA homeowners by working with lenders to find creative solutions to avoid foreclosure.” Their toll-free number is 888-297-8685.
Cathy Uzzell
I would to know if it is true that in the stste of Indiana you can’t collect money until you close on a loan modification.
Joanne Gaskin
I’d love to help you out on this, Cathy, but I don’t know what money you’re looking to collect. Could you give me some more details?
Gladys
Ms Gaskin - I want to make this story as short as possible. My mother - 80 years old can’t make the payments of her house, she ows more than the house is worth, at the present she’s making only interest payments with the help of her 2 daughters (including me) her brother, a friend and her SS checl of $580.00. she’s current in her payments, agai she only pays interest but at this point she can’t hardly survive. I can’t contribute more than $500 a months ’cause i have my own credit problems, can can i do? would she qualify for a modification mortgage plan and how would i handle it? Thanks in advance.