The new FHA short refi program is set to begin on Tuesday September 7. See technical details on the program here and an editorial about the difficulties the program may face here.
Also here are some excerpt from a recent WSJ article on the pending program:
Officials say between 500,000 and 1.5 million so-called underwater loans could be modified through the program, the first initiative to target homeowners who are current on their mortgage payments but are at risk of default because they have no equity in their homes. Some experts are warning, however, that the same knots that tied up prior initiatives could do so again.
Under the new “short refinance” program, banks and other creditors that write down mortgages to less than the value of the property can essentially hand off the reduced loan to the government. The process involves refinancing borrowers into loans backed by the Federal Housing Administration.
Fill in the form on the right to have one of our counselors answer more questions about available programs.