Archive for ‘Mortgage’

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February 14, 2012

Big Bank Foreclosure Fraud, Robo-Signer Settlement

Now the big question is….

Who gets what?

At least $10 billion will go toward reducing the principal for borrowers who are delinquent or underwater borrowers at risk of default. That is in stark contrast to President Obamas recently proposed housing re-fi program that disallowed owners who missed more than one payment.

Remember, its estimated that in order to completely wipe out ALL of the negative equity for the 11,000,000 underwater owners it would cost…700-800 BILLION. Cold hard fact is that one in five Americans with mortgages are underwater. On average, these homeowners are underwater by $50,000 each. With this settlement, at least $3 billion will go toward refinancing. Other payments will go toward state governments, and the federal government.

What does this mean to you…?

Roughly one million underwater owners are expected to have their mortgage debt reduced by lenders or able to refinance their homes at lower rates. Another 750,000 people who lost their homes to foreclosure from September 2008 to the end of 2011 will receive checks for about $2,000. The aid is to be distributed over three years. The settlement money will be doled out under a complicated formula that gives banks varying degrees of credit for different kinds of help. As a result, banks are incentivized to help harder-hit borrowers with homes worth far less than what they owe.

Is this the end of it…housing crisis over? You tell me…

4,000,000 have already lost their homes to foreclosure.

6,000,000 are currently IN default

11,000,000 are underwater (NOT including those who are termed, “near-underwater”. They would be underwater if they were to list their homes for sale factoring in normal selling fees etc)

Get your FREE Consultation on Short Sale and Loan Modification and FREE Short Sale Service by calling 310-562-0310 or click here

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February 10, 2012

Mortgage deal could bring billions in relief

On Thursday, federal and state officials announced a $26 billion foreclosure settlement with five of the largest home lenders. California is expected to receive approximately $12 billion in principal write-downs, including through short sales, over the next three years, according to the state attorney general's office.

Making sense of the story

  • The deal settles potential state charges about allegations of improper foreclosures based on robo-signing, seizures made without proper paperwork.
  • The settlement sets up a federal monitor to oversee the process and try to prevent the challenges that tripped up many homeowners seeking help in earlier programs designed to address the housing crisis.
  • Most of the relief will go to those who are underwater on their homes. That relief will come over the course of the next three years, with banks having incentives to provide most of the relief in the next 12 months.
  • At least $17 billion will go to reducing the principal owed by homeowners who are underwater and behind on their mortgages.
  • Up to 750,000 other underwater homeowners who are current on their mortgages will be able to refinance their current loans at lower rates. They will not receive a reduction in principal, but with mortgage rates near record lows, they could receive substantial savings on their monthly payments.
  • Approximately $1.5 billion will go to homeowners who had their homes foreclosed upon between Jan. 1, 2008 and Dec. 31, 2011, and who meet other criteria. They will receive up to $2,000 each.
  • The five mortgage servicers that are parties to the settlement include Bank of America, JPMorgan Chase, Citigroup, Wells Fargo, and Ally Financial (formerly GMAC).

Read the full story

Get your FREE Consultation on Short Sale and Loan Modification and FREE Short Sale Service by calling 310-562-0310 or click here

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July 7, 2011

FHA gives jobless homeowners one-year break

Beginning Aug. 1, the Federal Housing Administration will extend the period for unemployed homeowners to miss mortgage payments from four months to a full year, providing qualified homeowners with more time to find employment before the foreclosure process begins.

Making sense of the story

The new Special Forbearance program falls under the FHA’s Loss Mitigation program, which FHA-approved servicers must participate in.

The extended grace period only applies to FHA-backed loans and homeowners in the government’s foreclosure prevention program, the Making Home Affordable Program (MHA).

In addition to extending the forbearance period and removing the up-front hurdles for borrowers, the FHA also reemphasized its requirement that participating servicers conduct a review at the end of the forbearance period to evaluate the borrower for all additional, applicable foreclosure assistance programs and notify the borrower in writing whether or not he/she qualifies for any other available option.

If the borrower does not qualify for any foreclosure assistance option, the servicer must provide the borrower with the reason for denial and allow the borrower at least seven calendar days to submit additional information that may impact the servicer’s evaluation.

Housing and Urban Development, which oversees FHA, hopes private lenders and government-controlled Fannie Mae and Freddie Mac will adopt a similar policy.

For additional information on the program, including eligibility and requirements, please visit www.makinghomeaffordable.gov.

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July 7, 2011

Lenders prepare for lower loan limits; stop accepting certain applications

In anticipation of the expiration of current loan limits on Sept. 30, 2011, Bank of America has decided to stop accepting conventional and government applications for loan amounts that will exceed the permanent loan amounts. The deadline to submit loan applications was July 1.

According to an email from Bank of America, conventional loans that exceed the permanent loan limits will now be required to use non-conforming programs.

Barring Congressional action, the maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum. The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.

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September 28, 2010

FHA changes effective Oct 4, 2010

Effective October 4th, the following changes to FHA will be made:

- Upfront mortgage insurance premiums will decrease from 2.25% to 1.00%.
- At the same time, the 0.55% annual premium will be increased to 0.85% for mortgages with loan-to-value ratios up to and including 95%, and to 0.90% for loan-to-value ratios above 95%.
- Borrowers will be required to have a credit score of at least 580 to qualify.

for more details, read the full article at:
http://rismedia.com/2010-09-27/impending-fha-changes-underscore-need-for-realtors-to-stay-apprised-of-mortgage-options/

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