The hope for homeowners program was passed by the Federal Government on October 30th. The H4H program will reduce the principal balance on your home if you owe more than what your home is worth.
The plan is to reduce the balance to 87% of the homes current appraised value. The remainder of the balance will be forgiven in the form of a 1099. There have been over 90 Mortgage lenders that have signed up for the program and it should go into effect on January 1st.
Further information is available at the HUD.gov website listed under the H4H program guidelines. You must have made your mortgage payment for 6 months consecutively. There are 2 additional programs which most homeowners will qualify for if you have been having difficulty making your payments.
