Question by milisa c: How long do you have to pay Mortgage insurance on FHA loans?
I have been paying mortgage insurance for about four years now and my house payment keeps going up. Yes I have a fixed interest rate.
Best answer:
Answer by delete
30 years
Give your answer to this question below!
Question by Karen W: What is the term used when you get a break from paying a mortgage without going into foreclosure?
I heard about this on Oprah, link but then we were’nt in financial straits like we are now is there anyway we can save our house without filing for bankruptcy?
Best answer:
Answer by Darby
You need to talk to the mortgage company. They have no idea what’s going on unless you tell them. Maybe you can agree to pay the interest only until things improve. I don’t know what was said on Oprah.
What do you think? Answer below!
deferred payment?
There are several programs available from most mortgage lenders to try to help you over a tough period. The bottom line is, you have to contact your mortgage company and tell them your situation. Here are the programs that I know about:
Forebearance (probably what Oprah mentioned). During a period of illness or temporary job loss your mortgage company may agree to suspend payments for a period of time. Interest will continue to accrue and your mortgage will be extended to make up the amounts you do not pay.
Loan Modification. You essentially rewrite the terms of your mortgage with the lender. Often this involves taking past due payments and rolling them into a new mortgage with new terms. It allows you to get caught up and not worry about making double payments to play catch up.
The following is from the HUD website (which only applies to FHA insured mortgages but many lenders follow the same guidelines for conventional mortgages also):
Special Forbearance. Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.
Mortgage Modification. You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.
Partial Claim. Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current.
You may qualify if:
your loan is at least 4 months delinquent but no more than 12 months delinquent;
you are able to begin making full mortgage payments.
When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full.
The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property.
Pre-foreclosure sale. This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.
You may qualify if:
the loan is at least 2 months delinquent;
you are able to sell your house within 3 to 5 months; and
a new appraisal (that your lender will obtain) shows that the value of your home meets HUD program guidelines.
Deed-in-lieu of foreclosure. As a last resort, you may be able to voluntarily “give back” your property to the lender. This won’t save your house, but it is not as damaging to your credit rating as a foreclosure.
You may qualify if:
you are in default and don’t qualify for any of the other options; your attempts at selling the house before foreclosure were unsuccessful; and you don’t have another FHA mortgage in default.
You may also be able to refinance your home if you are not too far into the foreclosure process.
It may be called “Deed in lieu of foreclosure” or possibly a “short sale”. This would allow you to surrender the house without having to have it auctioned at the sheriff’s sale.
You really need to be asking your mortgage company instead a bunch of strangers. With the huge shakeup in the mortgage industry regarding sub-prime and Alt-A loans they (the mortgage) company should really try to help you. There are quite a few expenses in disposing of a house once it has gone to a sheriff’s sale. There are lawyer fees, court costs, advertising cost to sell the house, etc.