Some homeowners will find that the best option in their circumstances is to refinance at a better rate and pay off their old loan. Although this is not a option for everyone, it should be on the ‘table’ as an alternative option.
Recent legislation in Congress established the Hope for Homeowners Program, effective October 1, 2008. This program authorizes the Federal Housing Administration (FHA) to insure up to $300 billion worth of refinanced loans.
That means homeowners can modify their variable and teaser rate mortgages into lower interest, fixed rate 30 year mortgages. It is estimated that this program should be a lifeline for about 400,000 homeowners.
The following website provides the FHA contact information:
Take care and good luck.