The bFHA/b Secure bLoan/b – Preventing Foreclosure | bSecured Loans/b
Since the housing bubble has burst and the economy is at risk for a variety of factors, many people are finding themselves in trouble. Many of these people got mortgages that were adjustable-rate mortgages, for example. With rate increases becoming more and more common, these folks now cannot make mortgage payments on time or in full. However, even for someone in this situation, there is a new option, called the FHA Secure Loan.
At the end of October 2007, President Bush was the one to announce that a new FHA Secure Refinance Loan would be launched. It was designed to help homeowners avoid delinquent payments and even foreclosure. When it comes to the new mortgage product that is now available, basically it is a refinancing product designed to help people who are suffering from higher mortgage payments. This new product requires escrow for both insurance and taxes and will offer excellent assistance for people trying to avoid foreclosure.
FHA Secure Loan Benefits
There are several benefits on offer with the FHA Secure Loan, and details of just a few of these are listed below.
Benefit #1 – Prevention of Foreclosure – One of the most important benefits homeowners can reap with this type of loan is the ability to prevent foreclosure. The thought of losing your home after many years of making your mortgage repayments on time is devastating but it does not have to be this way and help is at hand for people with a good payment history.
Benefit #2 – No Prepayment Penalties – FHASecure also offers homeowners the benefit of no prepayment penalties. Of course, other mortgages are offered that do include prepayment penalties, but this is not one of them. Because the FHA is fully aware that people are already struggling to make payments, penalties will be avoided so that homeowners can not only skip this particular hardship, but they are also assured they will not be penalized for paying off their mortgages early.
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