I have a friend that is in a very bad loan and is about to lose everything. Does anyone have any information on the FHA Refi Program? Any help would be greatly appreciated.

I would recommend the Consumer Credit Counseling Service as a start (http://www.cccsfl.org/). If I recall, they get a lot of money from the Fed to work with those who are facing these kinds of hardships. I believe that they are also the recommended first step toward getting a loan modification anyway, but I'm not sure. It is a legitimate organization and could be a good first step for your friend.

Rich I would contact a mortgage broker that specializes in FHA loans.There are certain provisions and conditions that must be met for the FHA refi loan.

Specifically if they are upside down on value the junior lienholders would have to agree to take a writedown on there loans which some are not agreeing to. All I will say with CCCS is that it is just as bad as bankruptcy as far as credit reporting goes.While under the plan you are reported to the credit beruaus as in the plan which the credit model connotates negatively with your score.

This is just like in a chapter 13 repayment plan where you might cram down the debt and payment but while in the plan you can't rebuild credit and your credit stays bad.

Most bankruptcy plans and CCCS plans never get finished.(Sometime during the plan people fall on hard times again and can't make the payment) Which just makes it all for nothing as the late payments and fees kick right back in.

Best thing to do is to try and negotiate payment for deletion with creditors.In this scenario say you have a Mastercard with a limit of 800.00.You have missed payments and now owe 1,200 with fees and penalties.Say for 500.00 to 600.00 you can negotiate a payment for deletion from your credit report and the account is paid in full.Federal law states that a negative item CAN remain up to 7 years on your credit report.This means the creditor can stop reporting at any time if they so choose.

Alot can be learned at www.lexingtonlaw.com

With your friends loan if they can't refinance they might do well to contact the bank to FREEZE the current interest rate or if it has adjusted to bring it back down.All they need to say is they are facing foreclosure and can make the old payment and not the new one.

There are other options available but you won't know which one is best without a consultation.If they had massive debt and could qualify chapter 7 is good because you blow everything out and start fresh.Certain taxes and student loans and child support cannot be deleted with a chapter 7.

no legal advice

What type of mortgage does he have? Any Hardship?

Melvin
http://www.stopforeclosureassistance.com/mlist