Is your mortgage “under water”? The FHA announced that beginning Sept. 7, 2010, they will start accepting applications to help borrowers who owe more on their mortgages than their homes are worth. The “Short Refinance” program will encourage lenders to forgive 10% or more of a mortgage so that the loans can be refinanced at a lower interest rate. It would remove the troubled loan from the lender’s books and result in lower payments for the home owner.
The agency estimates that 500,000 to 1.5 million borrowers would be able to refinance their loans.
To read more about it click here: FHA Refinance Program