As promised in my previous post, I will now provide you with the final two bullets published by HUD in their FACT Sheet for H4H training manual. They saved these 2 for last for a reason - they are not reasonable criteria in my mind.
In order for Congress to sign off on this program, according to the powers that be, they had to add these requirements:
- Homeowners must agree to share both the equity created at the beginning of their new HOPE for Homeowners mortgage and any future appreciation in the value of their home.
- To participate, existing subordinate lenders must agree to release their outstanding mortgage liens.
OK, class. I mean, really. Would anyone want to give the government 50% of your equity after 20 long years? Probably not. Is this really a fair criteria? No. I say there are more options if you need help on your mortgage due to hardship, better options that I will discuss in the next post.
As for the second lien holder. IF you participate in this program and IF you're lucky enough to have your 2nd lien holder release you from your obligation, know that you are lucky indeed. When someone in the session stood up and asked which mortgage companies were doing the latter--the FHA/HUD trainers had no response. Counselors and other participants to this training companies spoke openly about the unwillingness of lenders to approve this program.
So, as I stated in Part I--back to the drawing board. Surely there's a better solution..
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