There are many options FHA borrowers have to avoid default and foreclosure on an FHA mortgage. Borrowers in trouble are encouraged to contact the FHA and their lender as early as possible in the process of dealing with financial difficulty–the earlier you act, the more options you have. There are several homeowner bailout programs available to help homeowners keep their homes, avoid missing additional mortgage payments and stay on financial track.
For borrowers who are struggling with rising mortgage payments or who have payments that are currently too high, refinancing is an option that can help easy the monthly money crunch. Some refinancing options are easier than others to get into–the FHA Streamline Refinancing program, for example, requires no new credit checks or employment verification in many cases.
In spite of the terms used to advertise some refinancing loans offered by some companies such as “no cost refinancing” there are fees and expenses associated with these loans.