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

Question

Who are FHA lenders for the new program?

Answer 1

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.

Answer 2

That is an extremely broad question. I would go to the HUD and FHA websites to get started.  

Answer 3

.     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.