Upside Down Mortgages HUD FHA Short Refinance Option to the Rescue

Many homeowners' mortgages are higher than the current market value, often referred to as an upside down mortgage (negative equity). HUD has rolled out an FHA Short Refinance Option on September 7, 2010 to help the 3-4 million struggling "upside down" homeowners who are current with payments. The program requires the consent of all lien holders and the homeowner must qualify under standard FHA underwriting requirements with a credit score of at least 500. The property must be the homeowners primary residence and the first lien holder must agree to write off at least 10% of the unpaid balance, bringing the borrower's combined loan-to-value ration to no greater than 115%. Additionally, the existing loan must not be an FHA-insured loan. Contact your lender to discuss this program and to see if they are willing to write down a portion of the unpaid balance. Today's real estate market reports are overwhelming; stay positive, we will get through this.

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• Upside Down Mortgage
• Negative Equity Home