In an announcement this past Friday by HUD, it was announced that homeowners with FHA loans no longer have to become delinquent on their payments before gaining eligibility for loss mitigation assistance. Under the new guidelines, these homeowners must fit the definition of one "facing imminent default". What that means is that the borrower must be facing reduction of income or some other form of financial hardship that will result in the homeowner finding it difficult to make the next scheduled payment. Conceivably, such other hardship could be something such as death in the immediate family or a health crisis uncovered by insurance.
This could cause the FHA's forbearance program to kick, thus allowing the lender involved to postpone, reduce or suspend scheduled payments on the loan. Questions? Get in touch with your lender NOW--before you fall into default.
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