September 19th, 2010 | 
Author: 
Do you want a loan modification for your FHA loan? You are in the same boat as millions of Americans who are unable to receive modifications for their FHA loan because the regulations surrounding these in the case of FHA loans are strict and, in most cases, unreasonable.
At this time, in order to qualify for a loan modification on your FHA loan, your current property can not be below 90 percent of the initial buying price. Most homeowners are lucky if their home value is still at 85 percent right now. On top of that, you, the borrower, must have been late on your mortgage payments for three months. Yes, people are having trouble paying their mortgages but requiring that a homeowner be late for three months is ridiculous. That is three months of harassing phone calls and more headache than needed.
Most lenders who are not under the FHA do not require a full 90 percent of original property value — some lenders do not even inquire about the home’s current value. Those who do have the home appraised or inquire about the home’s current value usually do not require such a high and almost impossible percentage. In fact, there are so many homeowners do not meet that one requirement that the entire loan modification portion Housing and Economic Recovery Act has been a complete bust.
The Obama Administration is currently attempting to meld the modification FHA standards to be more akin to the Home Affordable Loan Modification Program, but for now families and homeowners who have mortgages through the FHA are completely vulnerable to foreclosures.
Having a lender approve of your loan modification is difficult enough, with many lenders pensive to work with homeowners and many more unable to cope with the massive amount of requests for these. Lenders are under constant pressure with the housing crisis and millions of homeowners with FHA loans who are unable to afford their mortgage are applying for no reason whatsoever, because they are simply not allowed to have it because their current home value is below 90 percent. It is all turning out to be a big vicious cycle.
If you happen to be a homeowner seeking loan modification via FHA loans, you are out of luck for now. While the cogs of politics are grinding away trying to find a solution, you are one of the millions who are up the creek without a paddle. There will be some sort of change in the near future to assist those who have FHA loans actually receive assistance, but it is coming slowly. For the time being, thousands in financial hardship are losing their homes to foreclosure because there is no way to fight for them in this sort of financial climate.
Posted in Fha Loans | 
Tags: Current Value, Economic Recovery Act, Foreclosures, Hassle, Headache, Lenders, Mortgage Payments, Reason