New Housing Law Provides FHA Foreclosure Rescue

The recently-passed Housing and Economic Recovery Act of 2008 developed a refinance program for homebuyers with problematic subprime loans. Under the new law, lenders can write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008. This rescue plan is aimed at stabilizing the housing economy and preventing foreclosures.

Click here to see details of the FHA Foreclosure Rescue Program.