FANNIE MAE TO FINE SLOW LOAN SERVICERS!
Fannie Mae, one of the two Government Sponsored Enterprises that purchases most of the mortgage loans on the secondary market, has announced that they will start charging loan servicers for delaying the processing older loans. Files handled in 2010 are under review and Fannie Mae will levy fines where loan servicers were two slow.
Distressed homeowners and buyers who have made offers on short sale properties are likely to benefit, especially those with loans owned by Fannie Mae investors. Inefficiency of the loan servicers will now be costing them money. This new motivation is likely to speed up the short sale process and is welcomed by all but those loan servicers.
Select this link to review the complete story:
Citibank Paying Borrowers $12,000 To Complete Short Sale!
Citibank Paying Borrowers $12,000 To Complete Short Sale!
Mortgage loan servicers now realize that approving short sales net their investors considerably more than they would get through foreclosure. When the almighty buck speaks, banks and investors listen.
CitiMortgage, a division of Citibank, has adopted a program this year that benefits distressed homeowners. They are actually paying distressed homeowners to complete a short sale rather than facing–the more expensive, for the investor, and more devastating, for the borrower, foreclosure. CitiMortgage has paid an average of $ 12,000 to those who complete an approved short sale in 2011! That is a little more than the $ 1000 to $ 3000 cash-for-keys programs that have been available to qualified homeowners in the past.
If you, a friend or family member are in the foreclosure process with a Citibank mortgage there may be some cash available to help soften the blow.
Select this link to read the complete article:
http://www.housingwire.com/2011/06/16/citimortgage-paying-borrowers-12000-after-a-short-sale
THIS MONTH IN REAL ESTATE – JUNE 2011
This month in Real Estate – June 2011
This is a monthly video which covers various aspects of the real estate purchase. This month home repairs and home inspoections are the main subject.
50% OFF ON HOMES FOR SALE—NO SCAM!
50% OFF ON HOMES FOR SALE—NO SCAM!
We are inundated with marketing material promising that if we only buy X product we will lose weight, develop Schwarzenegger-like bodies or grow hair where none has grown for decades. Naturally, we tune out and go about our daily activities.
However, for the very narrowly defined guidelines, the U.S. Department of Housing and Urban Development has a program that allows those qualified to buy homes for 50% off the asking price. In many cases, qualified buyers can also obtain FHA financing on their purchase and may only have to put a $ 100 down payment!
Now, you ask, what is the catch?
- It is simple; to qualify the buyer must be a first responder (Law enforcement officer, fire fighter, emergency medical technician) or a teacher.
- They must be employed in the qualifying position full time
- They can not have owned a home for the past twelve months
- The property MUST be their only residence
- They have to agree to live in the property for at least three years
- Only specific HUD homes qualify
A HUD home is one in which the previous owner had an FHA guaranteed loan. That borrower defaulted on the loan and the lien holder foreclosed on the property. (Once the lien holder completed the foreclosure process they have the option to sell the property as an REO-bank owned home–or they can transfer the deed to the Secretary of Housing and Urban Development in exchange for the FHA insurance coverage.) Once HUD has title, they market the home as a HUD home. http://www.Hudhomestore.com
Those homes located in areas that HUD determines are eligible qualify for the Good Neighbor Next Door Program. Those are the homes available to qualified buyers at 50% off the asking price!
The qualifications are very narrowly defined and the homes may need some work. However, if you can buy a $ 200,000 home for $ 100,000 with only $ 100 down, there is little room to complain.
Note that not all Realtors are qualified to represent buyers in the purchase of a HUD home. Naturally, we are. So, if you, a family member or friend are qualified for this program, give us a call. We will be happy to help you find properties that qualify and represent you in their purchase.
FORECLOSURE MYTHS DEBUNKED
FORECLOSURE MYTHS DEBUNKED
A recent L.A. Times article, Foreclosure myths, debunked, addresses the emotional impact that distressed homeowners experience when they enter the foreclosure process. The article provides some helpful information that these homeowners need. It encourages them to communicate with their lender(s) as soon as they reach the point where they can no longer afford to keep up their mortgage payments and cautions them not to pay for any assistance services in advance.
If you know a family who is having trouble making their mortgage payments you may wish to tell them about the article or provide them with a copy.
Select this link to read the compl;ete article:
http://www.latimes.com/business/realestate/la-fi-lew-20110612,0,7530880.story