SellingNorthernNV

Posted By mharper on June 8, 2009

Owing to the subprime mortgage crisis, the mortgage market in United States fell like a pack of cards. The Make Affordable Plan was such that it failed to address problems of homeowners with second mortgages. The Making Home Affordable Plan was greatly criticized as more and more homeowners lost their homes to foreclosure and were left shelter less. In response to the homeowners’ plight, the President introduced another program known as Foreclosure Prevention Plan.

- What are salient features of the new program?

A homeowner qualifying for the Foreclosure prevention plan can enjoy lower interest rates and consequently lower monthly payments. The plan ensures that the interest rate on second mortgages can drop to 1% for a period of 5 years. The earlier program failed to attend to the problems of the homeowners having second mortgages. This program however overcomes the lacuna.

- How will this program be funded?

The foreclosure prevention plan will receive USD$50 billion. This cash was assigned from the Treasury Department’s USD$700 billion bailout fund that was established by the Congress a year ago.

- How much will lenders and borrowers receive as incentives?

The program aims at extending cash incentives to borrowers as well as lenders for modifying terms of second mortgages. The foreclosure prevention plan would extend USD$500 as upfront to a lender. Lenders would also receive USD$250 for a span of 3 years till the time the payments are kept updated or current.

The borrowers have been offered incentives too. A borrower will receive USD$250 for staying current on their mortgage payments. They will continue receiving this cash incentive for a span of 5 years.

- Is this program addressing “underwater” homeowners?

The Treasury Department is trying to revive the Hope for Homeowners program that was launched earlier. The program enables homeowners to refinance their existing mortgages so that they can enjoy favorable rates. However, there was a snag on part of the lenders. The fact that the program required lenders to cut down principal balance of the homeowners stalled the program. So far a single homeowner has benefited from this program. However, the government has made certain changes in the earlier program making it more attractive for lenders.

Henceforth, lenders will receive USD$2500 for refinancing mortgages under the Hope for Homeowners program. And lenders will continue to receive USD$1000 for 3 years till the time a borrower stays current on his mortgage payments. This program is expected to help homeowners build equity in their property.

Quoting a Treasury statement “Underwater borrowers are more likely to be at risk of foreclosure, so increasing equity for these homeowners through Hope for Homeowners will be an important tool for the Administration.

This post provided by:

www.mortgagefit.com

Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com

Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

Category: Uncategorized | 2 Comments »
Tags:

Posted By admin on June 3, 2009

Freddie Mac released bulleting Number: 2009-5 on March 4, 2009 in support of the federal Making Home Affordable Program. The bulletin included eligibility requirements for the Freddie Mac Relief Refinance Mortgage. The following are key aspects of that Bulleting:

Overview

First Lien, conventional Mortgages owned or securitized by Freddie Mac may be eligible for refinancing under the terms of this offering. The significant features of the Freddie Mac Relief Refinance Mortgage offering are:

- Mortgages are only subject to the Market Condition delivery fee. No other post settlement delivery fees will be assessed.

- A maximum loan-to-value (LTV) ratio of 105%. There are no maximum total LTV (TLTV) and Home Equity Line of Credit TLTV (HTLTV) ratios.

- Relief from standard Mortgage insurance requirements

- Use of a value estimate from Freddie Mac’s Home Value Explorer (HVE) and relief from value, condition and marketability representations and warranties for eligible Freddie Mac Relief Refinance Mortgages.

Effective Date

Freddie Mac Relief Refinance Mortgages must have Freddie Mac Settlement Dates on or after April 1, 2009 and must have Note Dates on or before June 10, 2010.

Eligibility Requirements

Mortgages being refinanced

Must be a First Lien, conventional Mortgage currently owned in whole or part, or securitized by Freddie Mac that meets the following requirements:

- Is service by the Seller, or an Affiliate of the Seller, origination the Freddie Mac Relief Refinance Mortgage.

- Have met Freddie Mac’s eligibility requirements as stated in the Seller’s Purchase Documents on the Note Date of the Mortgage being refinanced.

- Is Seasoned for at least three months

- Mortgage payment history has not been 30 or more days delinquent in the most recent 12 months or, if the Mortgage is seasoned for less than 12 months, since the Mortgage Note Date.

Freddie Mac Relief Refinanced Mortgages

The new Freddie Mac Relief Refinance Mortgages must be one of the following Mortgage Products:

- A conventional 15-, 20-, or 30-year fixed-rate, fully amortizing Mortgage.

- A conventional nonconvertible 5/1, 7/1, or 10/1 fully amortizing adjustable rate Mortgage (ARM).

The Freddie Mac Refinance Mortgage must be originated for one of the following purposes:

- To reduce the interest rate of the First Lien Mortgage.

- To replace an ARM, an Initial Interest Mortgage or any Mortgage with an interest-only period, or a Balloon/Reset Mortgage with a fixed-rate, fully amortizing Mortgage.

- To reduce the amortization term of the First Lien Mortgage. The Freddie Mac Relief Refinance Mortgage must not have a longer amortization term than the Mortgage being refinanced.

The Borrower(s) obligated on the Note for the Freddie Mac Relief Refinance Mortgage must be the same as the Borrower(s) obligated on the Note on the Mortgage being refinanced, except that the Borrower obligated on the Note on the Freddie Mac Relief Refinance Mortgage may be omitted due to death or divorce under certain circumstances.

Must be secured by Mortgaged Premises that are:

- 1- to 4-unit Primary Residences

- Second Homes

- 1- to 4-unit Investment Properties

The proceeds of the Freddie Mac Relief Refinance Mortgage must be used only to:

- Pay of the first Mortgage

- Pay no more than $2,500 in related Closing Costs, Financing Costs and Prepaids/Escrows, provided that the funds applied to these costs must not exceed the $2,500 limit, or

- Be applied as a principal curtailment to the new refinance Mortgage.

The proceeds must not be used to pay off or pay down any junior liens.

Underwriting the Mortgage/qualifying the Borrower

The Mortgage payment history for the Mortgage being refinanced must indicate that the Mortgage has not been 30 or more days delinquent in the most recent 12 months or, if the Mortgage is seasoned for less than 12 months, since the Mortgage Note Date.

The is no minimum Indicator Score requirement for the Freddie Mac Relief Refinance Mortgage unless the Borrower’s principal and interest payment on the Freddie Mac Relief Refinance Mortgage increases by more than 20% of the principal and interest payment most frequently made by the Borrower during the most recent 12 months, or since the Note Date of the Mortgage being refinanced if the Note Date is less than 12 months prior to the application date of the Freddie Mac Relief Refinance Mortgage. In such event, the Mortgage must have a minimum Indicator Score of 620 and other additional requirements must be met.

Maximum LTV, TLTV and HTLTV requirements

The maximum LTV ratio for Freddie Mac Relief Refinance Mortgages is 105%. There are no maximum TLTV and HTLTV ratios.

Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com

Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

Category: Freddie Mac, Loan Modification Series | No Comments »
Tags: bulletin, Freddie Mac, Loan Modification, Making Home Affordable, refinance, relief refinances mortgages

Posted By admin on June 2, 2009

Per: Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers

Effective March 1, 2009, closing of pre-foreclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in aggregate. Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with pre-foreclosure sales.

Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com

Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

Category: FannieMae, Short Sale & Foreclosures | No Comments »
Tags: commission, FannieMae, short sale

Posted By admin on June 2, 2009

What is a Short Sale?

A Short Sale is when a bank agrees to accept less than what is owed as “payment in full”, in an effort to avoid the foreclosure process. The bank agrees to “write-off” and forgives the remaining portion owed.

Why would a mortgage lender agree to a Short Sale?

- Because real estate and foreclosure laws vary from state to state, the foreclosure process can take a very long time and may tie up both their financial and legal resources as they try to keep up with the different requirements in each state. This lengthy process can be very expensive for the company.

- If a Bank forecloses, the most they can hope for is to sell the property at market value. They would rather just allow a short sale, and avoid having to market and maintain the property themselves.

- Many lenders have to hold cash in reserves to balance the value of the REO properties that are on their books. Many times, this amount can be 3 time the value of the properties themselves. The more money they have to hold in reserve, the less they are allowed to lend.

- Mortgage companies are in the business of lending money, not selling real estate. They are more likely to just cut their losses with a short sale, so that they can go about their normal business.

What are the requirements to begin the short sale process?

- You must be behind on payments
- You must have suffered a hardship (not always just a financial one)
-You must have little or no equity in the home.
- And that’s it.

Will I be responsible to pay taxes on the amount forgiven?

You may be exempt from having to claim the forgiven amount on your taxes under the “Mortgage Forgiveness Debt Relief Act of 2007”.

See Mortgage Debt Relief Act Q&A for more information. You should also speak to a tax professional about your concerns.

What if I don’t want to sell? Should I try a loan modification?

See Four Things You Should Know for more information.

Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com

Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

Category: Short Sale & Foreclosures | No Comments »
Tags: Default, Loan Modification, mortgage, Mortgage Forgiveness, short sale

Posted By admin on June 2, 2009

In February 2008, the Short Sales Work Group (established by NAR) met to put together a report which addressed Realtor’s concerns about Short Sales. The work group submitted its report in May 2008.

The following recommendations were included in the report:

- To get a commitment by lenders to make it easy for sellers and agents to locate online the correct department and individuals who will be handling the short sale.
- To create an industry-wide short sale application and list of required documents that all lenders and servicers would accept.
- To ensure that the listing agent and seller are regularly informed on the status of the short sale application.
- A commitment by lenders and servicers to deliver clear answers, in writing (yes or no), and within a reasonable time frame.

Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com

Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

Category: Short Sale & Foreclosures | No Comments »
Tags: NAR, Realtor, short sale, work group