December 2009 Mortgage Rate Trends
January 9th, 2010Mortgage Rate Trends Historical through November 2009
December 10th, 2009Education on AB957, Some FAQ to help you.
December 1st, 2009AB957-Buyers Choice Act.
December 1st, 2009So you want to see if rates drop even lower eh?
November 12th, 2009Housing Statistics Comparison May 2008 – May 2009
June 11th, 2009Each month I will be publishing to my blog space a multi-page report that is designed to help you become more engaged with what is going on in the market. This report is provided by Terradatum, a leader in delivering Real Estate related market updates using technology to desktops in a way that is both user-friendly and absolutely accurate! Consider this just another gift from me to you.
Below is your first report. May 2008 vs. May 2009
residential-market-statistics-may-08-vs-may-09.pdf
These reports are best viewed with Adobe Reader 9.0, which uses your browser.
Commonly Asked Questions About Loan Modifications
May 23rd, 2009The loan modification process can be frustrating and confusing for many distressed homeowners. If you are considering contacting your lender about a loan workout to avoid foreclosure, you need to get as much information upfront as possible so you will be prepared and able to present your case in the best possible light. Programs and guidelines are changing and it is getting much easier for homeowners to get the help they need. To help you understand how the process works and what you can expect, here are the Top 10 Questions and Answers:
- What exactly is a loan modification? A loan modification is a permanent change in one or more terms of a borrower’s home loan, allows the loan to be reinstated, and results in a payment the homeowner can afford
- Can the lender include late charges in the Loan Modification? Per HUD, the accrued late charges should be waived by the lender at the time of the loan workout-this varies depending on the type of loan-but always request a complete breakdown and description of all fees and penalties from your lender
- How will the new government programs help me get a loan modification? The Federal government has allocated $75 billion dollars to subsidize lenders and servicers who offer a loan workout to their clients. Now, the banks will have a monetary incentive to offer help to qualified borrowers. In addition, homeowners who pay their new modified payments on time will be eligible up to $5000 credit to their loan balance.
- How do I know if I will qualify for a loan modification? The number 1 criteria your lender is looking at is your ability to make the new modified payment now and in the future. You need to supply the lender with proof of your income, along with a complete and accurate financial statement detailing your income and expenses to show them that if granted the modification, you will be able to afford the new, lower payment
- Do I have to be currently delinquent on my payments to get a loan modification? Most lenders are now accepting applications from homeowners who are not currently delinquent, but who are able to prove to their bank that due to imminent interest rate increases, they will no longer be able to afford the loan payment under the terms of their loan. It is advisable to contact your lender as soon as possible to start the loan modification process, regardless of if you are delinquent or not.
- What is an acceptable Hardship situation? Each homeowner has a unique set of circumstances that caused them to fall behind on their home loan, but generally the lenders consider divorce/separation, loss of income, death of spouse, co borrower or family member, illness, job relocation, military service to be acceptable reasons to consider a loan modification. A compelling hardship letter included in your application is a very important part of a successful application.
- Will a loan modification help me stop foreclosure? Yes, that is the goal-by working with your lender to find a loan workout solution, your loan is brought current and the foreclosure process is halted.
- Can my missed payments be added back into my new loan modification? Yes, the arrears can be added to the new loan balance and spread out over the term to allow the loan to be brought current.
- Can I do a loan modification myself or should I pay someone to represent me? That is entirely up to you and your comfort level with dealing with your lender, but also your current financial situation as most loan modification companies require a large upfront fee. Regardless of what you decide, the first thing you should do is learn all you can about the process, your legal rights, and what it takes to get your application approved.
- So how do I get started to modify my loan? Before contacting your bank’s loss mitigation department or a loan mod company, do your homework-learn as much as you can about the loan modification process so you can make informed decisions.
President Obama’s Homeowner Stability and Affordability Plan offers real hope for millions of homeowners who need a solution to stay in their home. Not everyone will qualify however, and interested borrowers will have to complete loan modification application forms, provide proof of their income and meet certain eligibility requirements. Most lenders are participating in this new government subsidized plan, and homeowners are encouraged to learn how they can qualify and apply for a loan workout and avoid foreclosure.
First time home buyer? FHA is the new kid on the block!
March 2nd, 2009|
FHA FAQ’s: Get to know FHA, it is going to be a good friend of yours. |
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FHA loans can do many things that conventioanal loans cannot. I’ll start by dispelling some of the myths that I keep hearing. Myth #1–FHA loans are harder to get done then conventional. Actually, it is the opposite. In most cases, FHA has more lenient restrictions then conventional. Here are some examples:
Myth #2–FHA is slow. It is true that they can’t be rushed that fast, but they are not slow. I can have a lender approval for you within a day of taking the loan application. The file won’t need a second signature, or to be passed around for different departments to review. It is important for us to get your borrower approved ahead of time Myth #3–FHA is more expensive. The monthly MI payments are quite a bit smaller. Also, since there is less risk in the loans for the lender, these rates seem to be a bit lower. With credit lower than 660, FHA is actually LESS expensive irregardless of downpayment. There are some important things to understand when doing an offer that will use and FHA loan. First, the condition of the property is important. A termite report is required. Also, an appraiser may comment on repairs that he feels are health and safety issues. Examples are, torn or filthy carpet, holes in walls, broken appliances, missing light fixtures, broken windows, etc. The idea is that buyers with minimum down payments will not be facing expenses or dangers when they move in. Also, FHA offers a unique refinance opportunity to borrowers. If rates drop, we can do a new loan that DOES NOT require new credit, new appraisal, new income documentation, etc! We simply replace the loan with a better one! Rates right now are at about 5.25% 30 year fixed. |
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Loans for government employees can have some great advantages. These programs allow employees who are contributing into their retirement funds to obtain a home loan with only 3.0% down. There are three reasons these loans are even better than FHA loans. First, the loan is broken into two loans. The first is at 80% and avoids any MI premiums. Second, the junior lien requires no payments for five years. It still acrues interest at the same rate the first loan does, however, it is deferred until year 6. Finally, the borrower must have only 1.0% of their own money as down payment. |






