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In July this year, President Bush signed a new program that will help many homeowners to avoid foreclosure and stay in their homes.

In recent weeks I have many e-mails from my subscribers on this new release-aid program, because they have no idea how this new program is suppose to homeowners, and who may or not, but they want especially to know if it is needed to help, would it be with all conditions and it is still something in the small print that they know or know?

This bill is suppose to alleviate the struggling housing market, but the reality is that this Bill is to strengthen the mortgage finance giants Fannie Mae and Freddie Mac, before they have to bail-out by the government, and not just about the most struggling homeowners.

And yes, when, and it's a big "if", but if you qualify and the vigorous scrutiny, and finally baked for an FHA Home Mortgage Loan, there are a lot of things that you know and you better read, because, as usual, it is very likely that you do not explain all the details with the strings, which, together with this agreement.

In many, many cases, people will be better letting their houses go to foreclosure, rent for a year or two, and then when the stop-home prices, star fresh and buy a new property.

For Stern, before homeowners can FHA-backed mortgages, they must first retire any other debt at home, like a home equity loan or line of credit. Borrowers are not permitted to accept from another home equity loan for at least five years.

This is a voluntary program, so that the lender, the original mortgage have to be revised before a loan can start things. The bill requires lenders to make major concessions, write down the value of the loan to 90% of the current home value. In areas where prices fell by more than 40%, which means a significant loss for the lender.

But lenders do not sign on a workout if they feel that they lose less money than they would by a house to go through the costly foreclosure.

Each loan will be taken over by an FHA lender on a case-by-case basis. This means that banks examine and verify income statements, bank accounts, job history and credit scores. It is as if the application for a new mortgage. You must complete all credit criteria to qualify.

Recalls for the lender is a voluntary program, so that if the original lender agrees to the write-off, a new lender buys the old loan and takes over the reworked mortgage.

What does it cost?

There is a predetermined up-front costs for borrowers to bear. Loan origination fees vary by lender, but these can usually be borne by the borrower during the term of the loan in the form of a slightly higher interest rate.

What's the catch?

Sometimes the cure is worse than the disease. In fact, the loan is refinanced They come with many strings, so that the homeowners need to understand what they are in. For one thing, borrowers are responsible for the payment of life insurance premium to the FTA will be 1.5% of the principal each year.

For example, if your home is worth $ 250,000, you promise to pay the FHA an annual fee of $ 3,750.00. That is on top of what you already paid for Home Home Insurance + Taxes.

Finally, if you like me, that I currently pay $ 5,000.00 in annual taxes, plus about $ 4,000.00 in Home Insurance, now, you have $ 12,750.00. Only taxes + insurance + New Mortgage Fee, which is abusive, I think.

Borrowers also agree to profit from future home-price appreciation with the FHA. To achieve this, they are a "" 3% exit fee "of the mortgage on the main FHA when they resell or refinance. This means that if I later sell my house, say for 275,000, I will have to pay to the FHA a total of $ 8,250.00, only for the exit fee. But it gets worst.

I agree to pay FHA 100% of profits from the higher I am aware of at home if I sell or refinance within a year. So, if the original loan principal is $ 200,000 and the house sold for $ 250,000, I, the borrower will owe the FHA $ 50,000.

To summarize, if I sell my house at any time in the future, no matter how many years from now, will I have to pay to the FHA a minimum of 50% of my profit.

Wrapping it with the financial crisis that this country is facing now is in the air, how, if at all, this new program will help release be carried out, but the fact is that no matter what will happen, you need to keep your House now more than ever, because this is the only way that you use all the help program that can be available in the future. To learn more, that you visit my site.

For more detailed information about this topic and to find tips and strategies to avoid foreclosure and stay in your house for more than two years without monthly mortgage payments, go to my website: How-To-AvoidForeclosure.info click here: Stop Foreclosure Remember, you can do this without paying for lawyers, agencies, or for any service at all. Simply click on the link Foreclosure Help