New HUD Program for Underwater Homes

Many homeowners who are underwater feel stuck because they can’t sell without taking a major loss and often they can’t refinance and if they want to benefit of certain mortgage modification programs they’re told they need to be behind on their home payments. If they’re current with their mortgage payments, All My Sons of Jacksonville found out thanks to AOL Real Estate that there’s a new U.S. Department of Housing and Urban Development program where homeowners can reduce their mortgage by 10%, if they qualify and if they’re lender approves. This is great for the states that have been hit the hardest including Florida, Nevada and Arizona which have between 35 and 70% of underwater home mortgages. As many as 4 million homeowners could get help by 2012 with the federal government funding up to 50 billion through the Troubled Asset Relief Program or TARP. To qualify the total mortgage amount for the borrower after refinancing can’t be greater than 115% of the current value of the home. The goal is to lower the mortgage to be closer to today’s actual value. The home must be the primary residence as well. There are more prerequisites on the TARP program.