An interesting (and well-done) study in Virginia reveals the plights of many homeowners now facing foreclosure due to what have been deemed "creative" lending practices when it came to re-working their home mortgages. This is just more evidence that the government should take some action to help guard against a widespread foreclosure problem in our country in the near future.
The article, which is from PilotOnline.com (read full story here), also mentions last week's statement issued by the National Association of Realtors (NAR) calling for the HUD to push through legislation changes to make refinancing mortgages more flexible under the Federal Housing Administration.
FHA refinances appear to be emerging as the best option for homeowners caught in subprime and option ARM loans with monthly payments that they cannot keep up with. Stay tuned to our FHA Lending Guide for more news as it develops.