If you're contemplating foreclosure, there's an option that could save your home. It's a government assistance program called the FHASecure initiative, and it's becoming more popular in the Amarillo area.
Anyone with an adjustable rate mortgage could stand to benefit from this program. It's designed to help homeowners refinance to a fixed interest rate, so their payments don't escalate. Even if you are late on monthly payments, you can still take advantage of it. Lenders say your credit score won't be hurt if you enroll, it could actually improve.
"Unfortunately some people have gotten behind, and ideally those are the people that will be helped the most because they'll get to a payment they can afford again, and they'll rebuild their credit, even if they got into a crunch there. Every time you make a payment on time, your credit score continues to improve. So if anything this will help your credit recover from whenever you hurt it with a few late payments," says Steven Liles, with Lending Street Mortgage Company.
These are some of the requirements to be eligible:
- Your payment history showed you to be current in making your monthly mortgage payments prior to the resetting of the mortgage.
- Your interest rate must have reset after June 2005 but before December 2009.
- You must have at least 3% cash or equity in your home.
- A sustained history of employment.
- The income to make your new payments on time.
- The mortgage being refinanced must be a non-FHA ARM that has reset.
For more information log onto www.mylendingstreet.com