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Last week the Housing Rescue Bill passed Congress and that is great news for households facing the possibility of foreclosure. This bill would allocate an additional $300 Billion for FHA Short Refinance Loans (FHASecure) allowing home owners faced with the prospect of foreclosure to do an FHA Short Refinance and keep their home, even if they owe substantially more than their home is worth.
Basically, an FHA Short Refinance allows a lender to take a short payoff and avoid the expenses associated with foreclosing on a property. In turn, homeowners will get an FHA Short Refinance Loan and buy insurance to cover their homes in case of default.
The FHA Short Refinance is also great news for neighborhoods as you really don't want to see a Foreclosure Sale sign in your neighbors yard, followed by a sale at a well below market value.
In Arizona, according to numbers published by Realtytrac, one out of every 70 Arizona households has been involved in foreclosure activity within the last 90 days. That number is an increase of more than 35% over the first quarter of 2008.
In Tucson, foreclosure activity is up more than 51% over the first quarter of 2008, and in Phoenix it is up over 36%.
If you or someone you know could benefit from an FHA Short Refinance, please contact our office at (520) 225-0380 or contact us throug this website.
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