Thursday, May 14, 2009
SOLANA BEACH Oceanfront CONDO for SALE! Solana Beach CA Ocean front real estate For SALE! Amazing VU
Friday, April 10, 2009
Thursday, March 5, 2009
OBAMA's Foreclosure PLAN!
Obama’s “Making Home Affordable” program is designed to work with lenders to modify the loan terms for up to 4 million homeowners and to refinance up to 5 million homeowners into more affordable fixed-rate loans.
Here are some questions and answers about the latest round of aid for homeowners.
A: How do I know if I qualify for the refinancing plan?
Q: Only homeowners in good standing whose loans are held by Fannie Mae or Freddie Mac qualify.
The property must be owner-occupied and the borrower must have enough income to make payments on the new mortgage debt.
Borrowers can’t owe more than 105 percent of their home’s current value on their first mortgage. For example, if your home is worth $200,000, your first mortgage can’t exceed $210,000. Borrowers with a second mortgage still can qualify as long as their first mortgage isn’t more than 105 percent of their home’s value.
Homeowners can’t take cash out during the refinancing to pay other debt.
Borrowers have until June 2010 to apply for the program.
Q: How do I know if my mortgage is owned by Fannie Mae or Freddie Mac?
A: Call your current lender or mortgage servicer. You can find the phone number on your monthly mortgage statement or coupon book.
You can also contact Fannie Mae at 1-800-7FANNIE and Freddie Mac at 1-800-FREDDIE from 8 a.m. to 8 p.m. EST. Or, go to http://www.fanniemae.com/homeaffordable and http://www.freddiemac.com/avoidforeclosure and fill out the online request forms.
Q: What borrowers qualify for the modification program?
A: You don’t have to be behind on your mortgage payments to qualify. Delinquent borrowers and current borrowers who are at risk of imminent default are both eligible.
The program applies to mortgages made on Jan. 1 or earlier. The mortgage payment including taxes, insurance and homeowners association dues must exceed 31 percent of the borrowers’ gross monthly income.
The property must be the homeowner’s primary residence. It can’t be investor-owned, vacant or condemned. Home loans for single-family properties that are worth more than $759,750 don’t qualify.
The program is voluntary, relying on a $75 billion subsidy to encourage mortgage companies to participate. Lenders must agree to reduce the loan payments to 38 percent of a borrower’s monthly income. After that, the government and lender split the cost of bringing the payment down to 31 percent.
Eligible borrowers will have to provide their most recent tax return and two pay stubs, as well as an “affidavit of financial hardship” to qualify for the loan modification program. In the affidavit, applicants will have to cite the reasons behind their financial woes, such as job loss or a drop in income. The government will then take steps to verify the information.
Borrowers are only allowed to have their loans modified once. The program runs through Dec. 31, 2012.
Q: What if I’m in bankruptcy or in active litigation over my mortgage?
A: That doesn’t necessarily keep you from qualifying for the modification program. And borrowers in active litigation can modify their home loans without waiving their legal rights.
Q: What do I do to get help?
A: For the modification program, call your lender or mortgage servicer to see if you’re eligible. For the refinance program, first find out if your mortgage is held by Fannie Mae or Freddie Mac. Then contact your lender, mortgage servicer or a mortgage broker for refinancing options.
Q: How soon can I get help?
A: Both the modification and refinancing programs start immediately.
Q: What if I don’t qualify for either program — is there any other way to get help with a mortgage?
A: Contact your lender or mortgage servicer regarding other modification programs or refinance options. Alternatively, contact a local housing counselor to negotiate with your lender or servicer, to help locate other local resources like rescue grants or loans, or to facilitate a short sale or deed-in-lieu of foreclosure if staying in the home isn’t possible.
A short sale is where homeowners sell houses for less than the amount owed on them, and the lender then considers the debt paid off. A deed-in-lieu of foreclosure is where the borrower gives the property to the lender to satisfy a delinquent loan and to avoid foreclosure proceedings.
Local housing counselors can be found at the U.S. Department of Housing and Urban Development’s Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.
Q: Do FHA, VA or USDA home loans qualify for modifications under Obama’s plan?
A: Mortgages backed by the Federal Housing Administration, Veterans Administration or the U.S. Department of Agriculture are being modified under other programs. The Obama Administration and Congress are working on legislation that would allow modifications of these home loans consistent with the Making Home Affordable program.
Tuesday, February 10, 2009
Friday, November 21, 2008
Fannie Mae and Freddie Mac to halt Foreclosures...at least for now!
URGENT NOTICE: Fannie Mae and Freddie Mac Foreclosure Freeze
by Tim Harris on November 20, 2008
As predicted, expect to see more foreclosure moratoriums…typically for 90 days. California tried this and it didn’t have any sort of significant effect. Expect to see a massive number of foreclosures hit the market after this artificial reprise….
Mortgage finance companies Fannie Mae and Freddie Mac are suspending foreclosures for about 16,000 households during the holiday season.
The two companies said Thursday that they will halt foreclosure sales between Nov. 26 and Jan. 9, while they evaluate whether borrowers qualify for a new loan modification program announced last week.
As you may recall when the government seized Indymac back the FDIC implemented their own “Mortgage Loan Modification” program. Overall, very few loans were actually modified as a percent of the whole. Now we are seeing that even after the homeowners have had their mortgages modified they are still missing payments. Loan Mods are a great solution in theory. But, the newest research about what happens post loan modification isn’t encouraging. Clearly, simply massive numbers of homes will become REO listings.
Fannie Mae said about 10,000 households would be affected, while Freddie Mac said the changes would affect about 6,000 borrowers who are facing foreclosure. The change does not apply to vacant homes.
Read that again….only 16,000 borrowers would be ‘affected’….that’s assuming they want to do a loan modification. Remember, a loan modification temporarily makes the payment lower….rarely, are there any principle reductions. In other words, they are still upside down in their homes. If they want to sell..and they don’t want a foreclosure on their credit one of their best options is doing a short sale.
OK, you will love this next part…..in order to qualify for this new initiative a borrower has to miss 3 mortgage payment….
Fannie and Freddie’s loan modification plan aims to help abate the foreclosure crisis by aiding homeowners who have fallen at least three months behind on their payments, but only if their loans are held by the two companies.
More fun facts….when I first read this next point a week or so ago I thought it was a misprint. Can we all agree that one of the (many) reasons we are in this immense real estate mess is because lenders gave mortgages to people who didn’t qualify? Assuming we are in agreement…then WHY the heck is it that the FHA is now allowing people to have mortgages with a 38% housing ratio? Get this, the actual housing debt to income ratio that the FHA uses is………..28%. So, the FHA is now becoming the worlds largest….SUB-PRIME lender!
Under the program, the new primary mortgage payments — including taxes and insurance _shouldn’t total more than 38 percent of homeowners’ pretax monthly income.
It very important that you read and clearly understand the next point…THIS year…2008…the NAR is estimating that there will be around 5 million home sales….the FDIC is expecting that by the end of THIS year…2008 there will be 4.4 MILLION borrowers who are deliquent on their mortgages. If you are a HREU Coaching Student you know that the best opportunities for helping the millions (and millions) of homeowners is still ahead of us. If the government predictions are correct nearly 50% of ALL sales in 2009 will be REOs and Shortsales.
Fannie and Freddie are the dominant players in the U.S. mortgage market but hold only 20 percent of delinquent loans. Ultimately about 400,000 households are likely to qualify for the loan modification program, according to Priya Misra, a mortgage analyst with Barclays Capital.
By contrast, the Federal Deposit Insurance Corp. estimates that more than 4.4 million borrowers will become delinquent by the end of next year, not including loans backed by Fannie and Freddie.
Friday, November 14, 2008
The 4 Point Plan - Economic Recovery Proposal
These tips would certainly help San Diego Real Estate, and the country!
Here is the 4 Point Plan from the NAR: National Association of Realtors! Call your congressman!
The Four Point Plan
The most recent economic stimulus bill, the Emergency Economic Stabilization Act, was a good first step towards stabilizing our nation’s economy. Unfortunately, a number of the Act’s provisions have not proven to be as useful at stabilizing the nation’s housing markets as was first thought.
Congress may consider second economic stimulus bill this month. If they do, there are a number of changes that could help to provide more stability to the nation’s real estate markets which most agree is a necessary step towards recovery.
NAR has urged Congress to include the following provisions in any future legislation:
Make the $7500 tax credit available to all purchasers and eliminate the repayment requirement. The credit’s limited availability and required repayment terms have severely limited the credit’s appeal to potential homebuyers. As a result, the credit has not been widely used or proven effective at stimulating sales.
Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 would significantly reduce the FHA, Fannie Mae and Freddie Mac loan limit from their 2008 levels. Now is not the time to limit the availability of affordable mortgages.
Get the Emergency Treasury bank relief program back on track by targeting more funds to mortgage relief efforts and increasing efforts to mitigate foreclosures. Don't just give the banks unrestricted cash. Make the program work to improve mortgage and housing markets as it was originally intended.
Permanently bar banks and banking conglomerates from engaging in real estate brokerage and management. The banks have proven they have enough to do to simply properly manage their current lines of business. Do we really want them to manage on the home buying process? Imagine what could have been the situation now if they already had the added ability to engage in real estate sales.
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For everything you need to survive in the N. San Diego Real Estate market, go to: http://www.MarcVonMusser.com
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