What are the guidelines for FHA bailout for mortgages? What is forgiven after short sale or foreclosure?

Who are FHA lenders for the new program?What are the guidelines for FHA bailout for mortgages? What is forgiven after short sale or foreclosure?
The ';bail out'; is not for foreclosures or short sales. It is a program to prevent both of these and make refinancing easier.





There is also a program to purchase foreclosures, to get them off of the market.What are the guidelines for FHA bailout for mortgages? What is forgiven after short sale or foreclosure?
. All FHA-approved lenders can participate. That is almost all of them in your city.


In some cases the forgiven amount after a short sale is the amount the bank ';lost'; on the eventual sale of the property. Same for a foreclosure.


The guidelines are that the current lender accept a payoff of 85% of the old loan. That amount is then loaned on the new FHA loan. The idea is to get rid of an adjustable rate and now have a fixed rate. Works best for people whose loan is going from 7% to 9% in a few weeks.
That is an extremely broad question. I would go to the HUD and FHA websites to get started.