Not that it ever proved itself viable to begin with, requiring as it did the voluntary participation of the troubled homeowner’s current lender, but HUD just announced that FHASecure is finished as of December 31st. Kaput.
FHA stills does (and did long before FHASecure was announced in Sept of ‘07) 100%+ combined loan to value (CLTV) refinances, assuming of course that you can convince your current lender to assume that 100%+ risk by subordinating the balance of any current financing to the new FHA 1st loan. That’s proven to be a grandiose assumption.
The main difference between the two programs is that while FHASecure required that you be in default, regular 100%+ FHA refinances require that you not be in default. Go figure. If that all sounds really stupid, like maybe the right hand didn’t know that the left hand had already spilled the beer, then I’m not alone. To make FHASecure an even bigger joke, banks now imposed minimum Fico scores of 580 to 620 for all FHA loans, something impossible to maintain when you have defaulted on your mortgage.
Anyway, we can at least strike FHASecure from the list of pseudo solutions to the foreclosure mess. The sooner we blow out all the legislative smoke, the sooner we can find and try to rekindle the spark of stability in housing.
I know I sound grumpy , but Merry Christmas anyway!
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