If you are a homeowner concerned about foreclosure in Pennsylvania, here's some news that might of interest to you. PHFA, the state housing finance agency, has long offered a HEMAP program to help homeowners avoid foreclosure as a result of hardship. This month, however, Gov. Rendell announced a pair of new programs designed to aid struggling homeowners as a result of poor loan products or a drop in their homes value when 100% financed.
The first new PHFA loan product is the "Refinance to an Affordable Loan Program" or REAL, where a homeowner can
refinance their existing adjustable or 100% loan to a 30 year fixed loan with flexible terms. This program has a few important conditions - one being that you can't be 60 days or more past due on your loan - so make the call now! Click here for more details on the PHFA homepage. A network of 72 lending firms will handle the REAL loans in the state.
The second program is called the Homeowner Equity Recovery Opportunity, where PHFA will actually buy the mortgage from the original lender and set up a repayment plan with the embattled homeowner. These loans are designed for owners who have credit and other financial issues that make refinancing a hurdle. You can read the press release for the HERO program here.
I came across a recent article by Sharon Smith which was very helpful. You can read that here as well. Check back at the PHFA homepage as more details of these programs are rolled out.
_________________________________________________________________________________________________________
For Lancaster PA homes for sale click here. Jeff Geoghan is a top real estate expert in Lancaster County, PA, and an involved community member. Jeff's work has been featured in the Lancaster Newspapers, WGAL Channel 8, PA Business Journal and Wall Street Journal. Jeff's blog on Lancaster County and its homes is nationally-featured. Contact Jeff for more help with your Lancaster PA Real Estate needs. Jeff is also a photographer - view some of his portfolio. Comments are welcome!
(Activerain Members Only May Subscribe. For a Subscription to my monthly email newsletter click here)
If you appreciated this post please rate it...comments welcome!
I wish instead of the state doing this the banks would actually allow the people to do it. It would help save so many homes from foreclosure and actually make the banks more money in the long run. A lot of the people I deal with are only in a temporary situation and if they were given a lock and some time, they usually could recover rather quickly!
But, the banks would rather just send letters and threaten them and hope that works, which it rarely does.
Jeff, these are programs that should save the homes of some borrowers whose adjustable rates have popped, and are having trouble financing.
(BTW, this post is posted twice...)