Hope For Homeowners
Posted by Kevin Kueneke | Currently 3 Comments »
Part of the recently passed Housing and Economic Recovery Act (HR 3221) is the new Hope for Homeowners program. This is an FHA sponsored short-sale refinance intended to allow distressed homeowners keep owner occupied homes from going into foreclosure. Although lenders are not required to participate in the program, there will still be plenty of homes saved. Here are some basics:
• Principal residence only. 
• Existing loan must have been obtained on or before January 1, 2008.
• Borrowers can be up to date on their mortgage or in default, but they must prove that they will not be able to keep paying their existing mortgage (mortgage debt ratio must exceed 31% of monthly income) AND they must certify that they did not intentionally default on the mortgage for the purpose of obtaining the HOPE loan.
• Calculation of the new loan will be based on the borrower’s ability to make mortgage payments determined by FHA and the loan-to-value limited to 90% of the appraised value.
• The existing lien holder must waive any prepayment penalties and fees, including attorney and foreclosure fees if foreclosure proceedings have already begun.
• The existing lien holders must agree to accept the proceeds as payment in full of all indebtedness under the new loan (no 1099 from the lender for lost proceeds); all encumbrances must be removed.
• Those lien holders of existing subordinate mortgages will be entitled to future appreciation of the property. Standards and policies of the shared appreciation will be developed by FHA.
• The new loan must be a 30 year fixed rate mortgage.
• The interest rates and origination fees will be determined by the new Federal Housing Finance Agency, but will be comparable to market rates.
• The new loan amount cannot exceed $550,400 which is 132% of FHLMC loan limit established in 2007.
• The borrowers cannot put a new second lien on the property for 5 years after the refinance takes place.
• Income must be documented by income tax returns for the most recent two years.
• The borrower cannot have been convicted of mortgage fraud under Federal or State law during the past 10 years.
• The borrower must supply documentation to prove that they only own this one residence. If they own other properties, they cannot utilize this program.
• Borrowers will pay an Upfront Mortgage Insurance Premium (UFMIP) of 3% of the loan amount and an annual mortgage insurance premium of 1.5% of the loan amount. This is higher than the 1.5% UFMIP and 0.5% annual mortgage insurance of “regular” FHA loans.
• Equity Appreciation: upon sale or disposition of the property or subsequent refinance there will be shared equity on a graduated scale; HUD is entitled to 100% of the initial equity if property is sold or loan refinanced in first 12 months, 90% in months 13-24, 80% in months 25-36, 70% in months 37-48, 60% in months 49-60, and 50% months 61 and on. HUD will be entitled to 50% of any appreciation over and above initial 10% equity, regardless of future sale date.
• The program will be implemented October 1, 2008, and expires September 30, 2011.
As stated above, lenders are not required to participate and most likely will not assist certain borrowers whose written down loan amount is less cost effective than a foreclosure. That is, if the new loan amount that the borrowers can actually afford, based on verified income, is significantly lower than the possible post-foreclosure net proceeds, the lien holder will most likely choose to foreclose.
The official HUD website states that FHA will insure up to $300 billion in new loans under this program so for those borrowers that will qualify, this program is obviously good news and very welcome relief.
***As of October 1, 2008, HUD is encouraging all interested homeowners to contact their servicing lender regarding this program***
Related Posts: CW Mortgage, Education, Foreclosures, Home Loans, Homeowners, Mortgage News, Short Sales
A Day at the Races and the Real Estate Market
Posted by Linda Schechner | Currently 1 Comment »
July, August and the beginning of September is racing season at the Del Mar Race Track. From opening day to the end of the season, it is a rite of passage to attend at least one of the track days where the “surf meets the turf,”when you live in the San Diego area.
It is interesting to see how we pick the winners. Is it the jockey, the stables, the sires, or do we just like the names of the horses? Sometimes we win with really no clue of how we choose the horse. The big excitement is when the horses are racing to the home stretch. Everyone is on their feet cheering their horse and hoping it is the first to cross the finish line.
The home stretch at a day at the races made me think of our homes that we live in. I always think of myself as a real estate professional who shows houses, but sells homes. I also wondered why the home is no longer where the heart is.
At one time people believed that owning a home was a refuge. We saved our money for our down-payment and our home became a sanctuary. We relived our memories and cherished our dreams in the homes we grew up in and the homes that we purchased later on in life.
Somewhere along the line, something changed. Even as national rates of homeownership climbed, the refuge of home became part of the problem. People took to boasting of “flipping” homes for profit and we started to see them as an ATM, collateral for more borrowing and spending that we couldn’t afford.
Perhaps, it’s time to rediscover our homes as a source of emotional security instead of collateral security. Remember the purchase of a home is a long term investment. People who purchased homes 5 or 6 years ago, are still seeing an appreciable gain than what they originally paid for the home. I don’t think we can say the same about the stock market.
This is a great opportunity to purchase a home, for your personal use or investment. It is also a great opportunity to change your life style. Need a bigger house for your growing family or downsizing to something smaller? Is it time to purchase your beach/city condo, or your mountain retreat? If it is, I will do my best to provide you with personal and professional results.
Linda
Phone: (760) 415-7083
Email: [email protected]
Related Posts: Real Estate News
Then Is Now…Part Deux
Posted by Susan "Sully" Sullivan | Currently 1 Comment »
Do you remember one of my previous blog theories titled, “Then Is Now”, meaning, “I wish I would have bought Then”…is Now!
Here is my most recent poignant thought that I would like to share with you… If this is the worst real estate market (for sellers) in recent history, then surely it creates some of the best buying opportunities in a lifetime as well.
Real Estate is not my job…it’s my passion! I don’t just sell real estate, I feel real estate and I am going on record to declare that TODAY/NOW is the time to invest. 
Think about it…With the feds planned interest rate hike coming very soon, combined with lenders tightening the belt on regulations regarding loan requirements, each day that goes by and each incremental interest rate hike, WILL affect your buying power. What is attainable today, in my humble opinion, may very well become out of reach for you tomorrow, and anytime in the future.
Here’s a scenario that has been occurring: You’ve been approved for a home loan and you’ve been waiting for “the bottom to fall out”. On a daily basis loan programs that you may have been approved for are being eliminated, and sometimes without ANY warning. You are now no longer approved and will be unable to purchase the home you have been waiting for when it finally becomes available. NOT FUN!
It is my intention to guide you through all the processes of this confusing time – and that even means using the ‘F’ word…Foreclosures, not my favorite, since there are multiple offers and are not always the best deal when you find unexpected surprises such as tax liens, concrete in the plumbing, AS IS conditions, and expedited contingency and closing time-lines. But I will give you my expert opinions and assistance if this is where you think you want to go. I’m finding that you can have a nice, clean and relaxed transaction in the same price range that the foreclosures end up getting pushed to in the multiple offer frenzy process. Personally, I like to shop when there’s no one else in the store, but that’s just me.
Bottom line: If you are still waiting on the fence, you may miss this opportune time to own a piece of the California Coastline.
IN OTHER WORDS… 
DON’T LET THIS BE YOU!! GET UP, GET OUT THERE, AND MAKE IT HAPPEN!
I look forward to facilitating all of your real estate needs and remain and please feel free to check out my blog on my website: www.sully4realestate.com or www.realestatedeva.com to read how I really feel about things.
Related Posts: Carlsbad, Foreclosures, Real Estate News
Save Gas, Time & Money with these Real Estate Search Tips
Posted by Erica Vautier Liodice | Currently 5 Comments »
The secret to having more Time and Money has been sought after by people for thousands of years. Recently, we have added a new item to the list of things to lust after…GAS.
While prices have come down slightly over the past week, they are anything but low. The average price for mid-grade gasoline in California is $4.23 while the U.S. average for mid-grade gasoline is $3.93 (data from from U.S. Energy Information Association, 8/11/08).
High gas prices wouldn’t be so bad if we were only driving a couple miles a day, but the majority of Americans are driving much more than that. In fact, the U.S. Department of Transportation reports that we drive an average of 13,476 miles per year.
At 20 miles per gallon and $4.23 per gallon, we are spending $2850.17 a year on gas.
Sigh!
Real Estate agents suffer even more than the rest of us as they tote clients up and down the coast, from property to property. Anyone searching for a new home understands this plight…
So now the great challenge is to find a way to save time, money AND gas. It is definitely a challenge, but it is not impossible.
Follow the tips below and you will be well on your way to conserving our most prized possessions while you search for a new home.
Drive Less
I know that sounds like a terrible inconvenience, but it actually can be quite the opposite. Advancements in technology have armed the Real Estate community with powerful new tools that allow buyers to virtually tour properties, neighborhoods and communities.
A savvy agent will be able to show you satellite images of potential homes and track traffic in the area. You will be able to eliminate homes that aren’t right for you without wasting time or gas.
In the past real estate agents would have to show their clients 15 to 20 homes before they would find one that they like. The drastic improvements in our ability to preview properties through the internet have lowed that number – now agents typically show clients only 6 homes before they fall in love.
Translation: Eliminate homes that aren’t right for you through electronic tours and save precious time and gas.
Get More Gas for your Money
If you can’t resist the temptation of taking the drive to a potential home, you can stretch your gas tank farther with these tricks.
- Fill Up in the Morning: Gas is kept underground in tanks. In the colder morning ground gas becomes more dense and you will get more gas in your tank.
- Don’t Squeeze the Nozzle Trigger: The faster the gas pumps into your car, the more vapor that goes in with it. Keep it at a slow speed and load up on gas, not air.
- Fill Up Well Before Empty: Gas evaporates quickly when exposed to air. If you keep your tank at least half full at all times (so there is less air in the tank) you will minimize evaporation and maximize value.
- Find a Less Expensive Gas Station: Use this website to search for the gas station near you with the lowest prices.
- Beat the Traffic: The stop-and-go of traffic will dramatically reduce your highway miles per gallon. Use this site to find traffic-free routes.
There is no quick fix for the Gas-Time-Money quest, but there are things you can do to make the best of it. Use a technology-friendly agent to eliminate homes you don’t need to preview in person and stretch your gas miles as far as they will go. Oh — and if anyone comes up with the secret to unlimited time, be sure to let me know!
Related Posts: Find A Home, Maps, Real Estate News, San Diego
Ring-Tailed TOOTER of the Week!
Posted by Pam & Joanna | Currently 1 Comment »
You Could Have Had it All for Just $690,000!
Over 3100 Sq. Ft., 5 Bedrooms, 3 Baths, Situated on over 2 acres on a cul-de-sac street, Pool, Spa, Guest House, and Fabulous Valley Center Views.
Check back every week to see properties you could have had…
or contact us and get one of your own!
Related Posts: Area Information, Buyers, Foreclosures, Valley Center
