What is FHA Secure?

What is FHA Secure? FHA Secure is for homeowners that are behind, getting behind or have had recent late payments on their mortgages. The government stepped in and created this program to give relief to homeowners. Many of these homeowners have subprime mortgages that are going to adjust. Many of these homeowners will be unable to afford the new payments when their ARM loans adjust.

If you are concerned about your mortgage adjusting or the payment is too high contact any lender or mortgage officer. FHA Secure is offered across the entire country. Do not delay if you are in trouble. The sooner that you act the better.

What is FHA Secure

Mortgage Paradigm Shifts on Capital Hill

There is a new movement on Capital Hill regarding help for distressed homeowners. What is happening is that Republican efforts to block homeowners with mortgage assistance is coming to an end. The worry over helping people who made poor buying choices went out the back door with the $30 billion push to prevent a Bear Stearns BK. It has also been clear that for months the FHASecure program has not produced the relief for home owners.

The final legislation is not finished yet, but it appears that thee will be ten billion dollars for states to make loans to homeowners. The states will be able to use several billion to convert at risk mortgages into fixed rate loan programs with better than market rates. This can only happen if the lenders are willing to take a loss. The lender loss will be 15 percent of the mortgage balance. This may be a better deal than what the banks would get if they were to go it alone.

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Bush is ready to start Mortgage Aid Plan

The Bush administration is finishing the details of the plan to save thousands of homeowners who are at risk of foreclosure by helping them refi into more affordable mortgage programs. These mortgages will be backed by public funding. The program is aimed at helping homeowners who owe more than their home is worth due to decreasing home prices. The Federal Housing Administration is encouraging lenders to forgive a portion of those loans and issue smaller ones. This plan is similar to the legislation proposed about two weeks ago by Barney Frank who is the chair for the House Financial Services Committee.

Nearly 9 million homeowners currently have negative equity in their property. This is a serious problem. If a homeowner did have equity they could refinance. Current mortgage guidelines are prohibitive to finance a home that has negative equity.

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Are Fed Rate Cuts Helping the Economy?

The Federal Reserve rate cut that is expected this afternoon may help stimulate a sluggish economy. However it may do little to break open the troubled credit markets and hands down the mortgage market.

I think with the amount of work that the fed has done already, it should be clear that more measures other than the fed may be needed. It's hard to believe that the fed alone could bail out our economy and sluggish mortgage market. Senator Charles Schumer, chairman of the Economic Policy Subcommittee, told CNBC Tuesday, "Everyone knows we need to do more to stabilize housing." I would concur, I think peoples biggest fears right now are those over home prices and the real estate market. Senator Schumer also called for easing up of capital requirements for Fannie Mae and Freddie Mac and threw out the idea of tax credits for homebuyers.


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Paulson's mortgage bailout is a farce

According to a recent survey conducted , the majority of Americans are opposed to a mortgage bailout program. A government sponsored bailout would be unfair and very costly to American taxpayers. It is unfair to ask people who made prudent financial decisions to pay for those that did not. You could not create a bailout that would be large enough to stop the impending home price correction and the impact it will have on the economy.

Present home prices are disconnected from real estate fundamentals. It is not right for prices to be higher than the level of affordability in so many different areas. It is just natural that prices correct at a later date.

The majority of subprime borrowers are not falling behind because their loans are now adjusting; they are getting behind because they got into more house than they could afford right from the start.

Most experts agree that the plan will not save enough homeowners from foreclosure. Home prices will drop about the same as without the plan.

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