There is excitement among under-water homeowners and others, about the newest program coming from the Government, called HARP. HARP stands for Home Affordable Refinance Program; it’s known informally as the “short refinance”. It will allow homeowners with no equity and those who owe more than their home is worth, to refinance into today’s record-low interest ... [Read More]
There is excitement among under-water homeowners and others, about the newest program coming from the Government, called HARP. HARP stands for Home Affordable Refinance Program; it’s known informally as the “short refinance”. It will allow homeowners with no equity and those who owe more than their home is worth, to refinance into today’s record-low interest [...]
Oh, for the good old days when you met with a prospective seller and listed the home, brought the offer and everyone was happy! Now, I’m meeting with sellers who are far from happy. They are stressed and under duress. Being upside down (owing more than the home is worth) is so common that perhaps ... [Read More]
Oh, for the good old days when you met with a prospective seller and listed the home, brought the offer and everyone was happy! Now, I’m meeting with sellers who are far from happy. They are stressed and under duress. Being upside down (owing more than the home is worth) is so common that perhaps a definition of the meaning is no longer necessary.
“My credit is ruined. I am months behind on my mortgage payments, credit cards, and I can’t even pay my water bill. ” said a upside down homeowner. “I lost my job, my car was repossesed. Then the mortgage payment increased. Why should I worry about a short sale?”
Well, many homeownersdon’t worry about it. They don’t answer the telephone or return calls. They are in denial of the situation and just maybe it will just go away. But there is light at the end of the tunnel and it doesn’t have to be the REO Train. Under HAFA rules the homeowner will get up to $3000 for moving expenses if the homowner qualifies. Losing a job certainly does. Also, bouncing back financially and becoming credit worthy will take only about two years with a short sale but over seven years with a foreclosure. A HAFA short sale also extends the time period for the homeowner to stay in the home as the auction date is extended.
HAFA rules that had been established are changing. The latest rule change is that you now can qualify for HAFA even if you have already vacated the home.
Why do the banks like HAFA short sales over foreclosures? The banks are trying to avoid the higher cost of the foreclosure process and the legal entanglements that go along with it. The banks are now realizing the value of the short sale process. This wasn’t the case a few months ago.
Take action as time is of the essence. Call your local HAFA certified or Short Sale & Foreclosure (SFR) certified Realtor today to see if you qualify for a HAFA short sale.
Related articles
Want Out? (3driblog.com)
Home Affordable Foreclosure Alternatives (HAFA)(massrealestatenews.com)
3 Ways on How To Stop Foreclosure(marketersdaily.com)
USA Today and The California Association of Realtors reported that Fannie Mae and Freddie Mac are raising risk fees charged to lenders on loans they buy for resale to investors. Fannie and Freddie also are adding risk fees to more loans offered to borrowers with exemplary credit. Although lenders could absorb the cost, most are ... [Read More]
USA Today and The California Association of Realtors reported that Fannie Mae and Freddie Mac are raising risk fees charged to lenders on loans they buy for resale to investors. Fannie and Freddie also are adding risk fees to more loans offered to borrowers with exemplary credit. Although lenders could absorb the cost, most are expected to add the fees to loan costs. Risk fees are almost certain for FICO scores of less than 740 and even for credit scores higher than 740 some lenders are expected to charge risk fees. Said fees are to start around March 1, 2011. Risk fees may add about a quarter of a point to the buyer’s cost. Roughly adding $10 month on a 200k purchase. While this isn’t very much, if might make it harder for the first time home buyer to qualify for a loan. California home sales are up.
Meanwhile, New York Times David Streitfeld, reported that home prices are falling in several metro areas but….” California and the District of Columbia — went counter to the trend and had rising prices over the last year.”
Interest rates are also expected to rise, there is a lot of pressure on the Fed to raise rates. The Fed is planning on raising rates once it is satisfied that the recovery is strong enough to absorb an interest rate hike. Current rates are still historically low ranging from 4.75 to 5.25%. FHA loans are available with as little as 3.5% down and a VA purchase can be 0% down.
All the key elements are in place for a prospective home buyer if that home buyer has job security. Fear of the potential for unemployment is keeping many buyers on the sidelines. They too are waiting for the economy to strengthen. Ironically, by waiting the California buyer will be paying more for the home. If a potential home buyer is secure in his/her job, then the time to do so has arrived.
Related articles
Fees for home mortgages increase(usatoday.com)
“Fannie and Freddie raising mortgage loan lenders risk fees” and related posts(personalmoneystore.com)
ABC’s for First Time Home Buyers(doorfly.com)
Fannie Mae Mortgage Interest Rates & Costs Rising(massrealestatenews.com)
Hot Real Estate Market in Benicia, California? (rdillion.com)
