FHA to provide early relief to homeowners
FHA to provide more relief to homeowners
The Federal Housing Administration, facing rising losses associated with its flagship mortgage insurance program, announced Friday an expansion of its efforts to help distressed homeowners avoid foreclosure, saying that borrowers no longer need to miss a mortgage payment to be eligible for assistance.
In the past, borrowers with FHA loans did not qualify for mortgage relief unless they had missed at least two payments. Now borrowers who are at risk of becoming delinquent, or facing “imminent default,” will also qualify. Borrowers could have interest rates lowered to reduce payments or have payments suspended for a limited period, according to an FHA statement.
But to be eligible for early relief, homeowners must show they lost a job, had a reduction in income or faced some other life change. This effort is separate from the federal foreclosure relief program, Making Home Affordable, which has struggled to reach many borrowers.
Renae Merle
Tags: distressed homeowners, federal foreclosure relief program, FHA, mortgage insurance program