FHA loan with PHFA, need help

extremekul

LoanSafe Member
Feb 7, 2011
2
0
0
Hi,

I've read so many different things over the last few months I'm lost. I have an FHA loan of 86k at 6.25% through PHFA. As of today it's 14 months behind and in foreclosure. I had agreed to a repayment plan during that time that increased my payments, but was unable to continue that. None of the paperwork in the foreclosure mentions that or any of the payments I made during that time but my contact at PHFA assures me they counted it. 8 months ago my boyfriend moved out (he was a "non liable co-borrower", just used for income I guess) reducing my income by 1100 a month. I've been trying to work with them to get my payments lowered but have had no luck.

My income as of the last financial statement I turned in is 1500 (500 of which is rental income). Property taxes are around 1500 yearly, and an insurance policy around 800 included in escrow. Payment is 876 a month. I'm told I can only talk to one person at PHFA, and she says the only thing I qualify for is either a higher monthly payment "repayment plan", or a "partial claim". She says I can't qualify for a mod because I would be "over the original loan value by $4000". Everything I've read tells me that they can go over the original loan value, or even reduce principal or extend the term. Am I not reading that right? I told her that, and she said they aren't even allowed to look at a mod if I qualify for something else. It's my understanding I wouldn't qualify for a partial claim because my reason for default is not cured, I'm still down a huge percentage of my income. Should I just take the partial claim because that's all I can get? I'm not really sure I'll be able to maintain those payments, so I don't know if that will help me, but I was served foreclosure papers on 2/4 and I don't know what else to do.

Anyone have any suggestions? Can I take the partial claim and apply for HAMP later if something changes in my financials?
 

heidi79

LoanSafe Member
Jan 24, 2009
419
1
18
Miami, Florida
FHA loans are a totally different thing than conventional, I wish they would come up with a real solution for all FHA loans but so far I haven't seen anything. The guidelines are ridiculous. They will not extend the loan term, they only decrease the interest rate minimally and tack on the past due balance to the end of the loan. So of course, people end up with payment exactly the same as their old one (if they are fortunate enough to even get approved) or a higher payment.

It's really unfair that FHA loans don't get the same terms as under a HAMP program. Sooner or later they have to come up with a solution for all of these people!