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Mortgage Help Available for HomeownersNearly 25,000 Pennsylvania homeowners will face higher home payments in 2008, according to State Senator Joe Scarnati (R-Jefferson) who is urging homeowners in his district to seek help if they have adjustable-rate mortgages they cannot afford. Homeowners with adjustable-rate mortgages should call their lender as soon as possible to determine whether their interest rate will increase - and, if so, by how much, Scarnati said. He added that a number of programs are available through the Pennsylvania Housing Finance Agency (PHFA) to help homeowners who are facing foreclosure. "The most important thing to do is to seek help quickly and examine all options, before a property goes into foreclosure," Scarnati said. He also added that lenders will try to rework the loan terms, but many people who end up in foreclosure have not sought such help. The PHFA also has a number of different options to help homeowners refinance and avoid foreclosure. Scarnati says homeowners can find out more about the PHFA programs and the qualifications by going to http://www.phfa.org/consumers/homeowners/real.aspx. They include REfinance to an Affordable Loan Program (REAL). The REAL program offers attractive 30-year fixed rates. Because it combines 100 percent financing with flexible credit underwriting, it may offer relief to homeowners like you who otherwise may not qualify for typical mortgage refinance programs. See the Rate Sheet for current interest rates. PHFA also offers free mortgage counseling through its network of Foreclosure Mitigation Counseling Initiative (FMCI) Agencies. These agencies can review specific situation and help homeowners sort through their options. PHFA also offers the Homeowners' Equity Recovery Opportunity Loan Program (HERO). HERO is a loan program designed to improve the financial situation of Pennsylvanians who are not able to afford their current mortgage payments. The HERO program provides for up to 100 percent financing but, instead of refinancing a current mortgage into a new loan, PHFA purchases the loan directly from the current lender and then sets homeowners up on an affordable repayment agreement. This program is for borrowers not eligible for PHFA's REAL program (REfinance to an Affordable Loan) or another mortgage refinance product available in the general market due to credit issues or owing more than your home's current appraised value. Funding for the HERO program is limited. Loans are reviewed by PHFA on a case-by-case basis as funding levels permit.
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