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jpar994
864 Posts |
 Posted - 08/21/2008 : 10:55:54 AM
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With all these new changes, and the new law that states lenders should negotiate payoffs to 90% of the current market value to be refinanced into a FHA loan at a cost of at most 50% of the profitable equity when the property is sold. Why cant we negotiate with these lenders and get a 90% COnforming LOan and not worry about the FHA getting the remaining equity?
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Captain Mortgage
1721 Posts |
Posted - 08/21/2008 : 10:59:02 AM
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Because the lenders will get some kind of incentive to write the note down only if it is going to become an FHA loan. They are funding the program through the money coming in from these new FHA loans.
You could always do it conventional with a short-refi, but they probably won't be as motivated to do it. |
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jpar994
864 Posts |
Posted - 08/21/2008 : 11:04:56 AM
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| So the lender is getting a incentive to do the loan but no money goes back to the lender still they have a loss on the short payoff! I just dont get why you wouldnt go through conforming to o this! |
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Captain Mortgage
1721 Posts |
Posted - 08/21/2008 : 1:04:28 PM
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The program offers government insurance to lenders who voluntarily reduce mortgages for at-risk homeowners.
That's quite the incentive to get this going.
http://www.hud.gov/news/recoveryactfaq.cfm |
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