By Alan Rappeport in New York
Published: December 24 2008 02:00 | Last updated: December 24 2008 02:00
The pace of sales of existing homes in the US slowed by 8.6 per cent last month, as buyers retreated from the market in spite of falling prices.
Home resales fell to an annual rate of 4.49m in November, down 10.6 per cent year-on-year, the National Association of Realtors (NAR) said yesterday. The median price of an existing home plummeted 13.2 per cent year-on-year to $181,000 (£123,000), the sharpest decline since record-keeping began in 1968.
http://www.ft.com/cms/s/0/53f41a0a-d15b-11dd-8cc3-000077b07658.html
Tuesday, December 23, 2008
Friday, December 19, 2008
Looking to Repair Bad Credit Due to Late Credit Card/Consumer Lates
STAY AWAY FROM FAST CREDIT REPAIR AND LOOK INTO REFINANCING INTO AN FHA LOAN!
If you’re looking to repair your credit due to consumer lates your best option may be through an FHA loan.
Getting an FHA loan will allow you to pay off the bad debt and allow you to build credit back up by paying on your mortgage!
Don’t think you qualify for an FHA loan?
Don’t worry! First contact your local lender who specializes in FHA mortgages and talk with that person about refinancing into an FHA secured loan. FHA has lower qualification standards than a conventional mortgage –so in return it makes it easier to qualify and get you back on track.
Through an FHA loan you are allowed lates on consumer debts and as long as your credit score is 580 or above you can refinance up to 95% Loan to Value without huge penalties to the interest rate!
If you’re looking to repair your credit due to consumer lates your best option may be through an FHA loan.
Getting an FHA loan will allow you to pay off the bad debt and allow you to build credit back up by paying on your mortgage!
Don’t think you qualify for an FHA loan?
Don’t worry! First contact your local lender who specializes in FHA mortgages and talk with that person about refinancing into an FHA secured loan. FHA has lower qualification standards than a conventional mortgage –so in return it makes it easier to qualify and get you back on track.
Through an FHA loan you are allowed lates on consumer debts and as long as your credit score is 580 or above you can refinance up to 95% Loan to Value without huge penalties to the interest rate!
Thursday, December 18, 2008
Consumers Get Important New Credit Card Protections
WASHINGTON, Dec 18, 2008 /PRNewswire-USNewswire via COMTEX/ -- Office of Thrift Supervision Adopts New Rules to Safeguard Consumers; Federal Reserve Board and National Credit Union Administration Set To Act Later Today
New rules adopted by the Office of Thrift Supervision today will help protect consumers from certain abusive credit card lending practices that can result in excessive fees and interest rate charges. The rules were developed in conjunction with the Federal Reserve Board and National Credit Union Administration, which are expected to adopt the same regulations later today. The new regulations will go into effect on July 1, 2010.
http://www.marketwatch.com/news/story/Consumers-Get-Important-New-Credit/story.aspx?guid=%7B46CE1908-6639-4EE8-AB21-877184C1D438%7D
New rules adopted by the Office of Thrift Supervision today will help protect consumers from certain abusive credit card lending practices that can result in excessive fees and interest rate charges. The rules were developed in conjunction with the Federal Reserve Board and National Credit Union Administration, which are expected to adopt the same regulations later today. The new regulations will go into effect on July 1, 2010.
http://www.marketwatch.com/news/story/Consumers-Get-Important-New-Credit/story.aspx?guid=%7B46CE1908-6639-4EE8-AB21-877184C1D438%7D
Tuesday, December 16, 2008
Feds Drop Rates
SAN FRANCISCO (MarketWatch) -- Long-dated Treasurys extended their gains Tuesday, further crushing yields to historic lows, after the Federal Reserve slashed its target rate to as low as zero and repeated its intent to lower borrowing costs by buying bonds.
http://http://www.marketwatch.com/news/story/treasury-yields-plunge-new-lows/story.aspx?guid=%7B2FB8B9AD-5E82-490D-95B9-153744E3FCBF%7D&dist=msr_1
http://http://www.marketwatch.com/news/story/treasury-yields-plunge-new-lows/story.aspx?guid=%7B2FB8B9AD-5E82-490D-95B9-153744E3FCBF%7D&dist=msr_1
Friday, December 5, 2008
As A Atlanta Braves Fan I'm Sorry To See Greg Go...
Greg Maddux to retire on Monday
David Zalubowski / Associated Press
Greg Maddux will announce his retirement on Monday at a news conference in Las Vegas, according to Scott Boras.
Greg Maddux, who won four Cy Young awards and 355 games, will announce his retirement on Monday.Maddux will make the official announcement at a news conference at baseball's winter meetings in his hometown of Las Vegas, according to a statement from his agent, Scott Boras.
Maddux, 42, closed out his career with the Dodgers. He did not start in the playoffs and made his final appearance in the National League championship series, mopping up for Chad Billingsley in the game in which the Philadelphia Phillies eliminated the Dodgers.Maddux said that day he was not offended to serve as a mop-up man."It was a privilege," he said. "I felt privileged to do it. I was glad I had a chance to pitch.
"It stinks that we lost. But there's a lot of good young players here, and they're only going to get better. I think this team has a chance to be good for a while."Maddux, a nine-time All-Star while pitching for the Atlanta Braves and Chicago Cubs, started his major-league career in 1986. His 355 victories rank eighth in major league history, one more than Roger Clemens, with Maddux earning his final win by holding the San Francisco Giants to one run over six innings on Sept. 27,The Dodgers acquired him from the San Diego Padres in August -- the second time in three years the Dodgers traded for him to fortify their rotation in a pennant stretch -- and he went 2-4 with a 5.09 earned-run average in seven starts.Every 300-game winner eligible for the Hall of Fame has been inducted, with Maddux, Clemens and Tom Glavine not yet eligible.Maddux also won his 18th Gold Glove this year.Shaikin is a Times staff writer.
David Zalubowski / Associated Press
Greg Maddux will announce his retirement on Monday at a news conference in Las Vegas, according to Scott Boras.
Greg Maddux, who won four Cy Young awards and 355 games, will announce his retirement on Monday.Maddux will make the official announcement at a news conference at baseball's winter meetings in his hometown of Las Vegas, according to a statement from his agent, Scott Boras.
Maddux, 42, closed out his career with the Dodgers. He did not start in the playoffs and made his final appearance in the National League championship series, mopping up for Chad Billingsley in the game in which the Philadelphia Phillies eliminated the Dodgers.Maddux said that day he was not offended to serve as a mop-up man."It was a privilege," he said. "I felt privileged to do it. I was glad I had a chance to pitch.
"It stinks that we lost. But there's a lot of good young players here, and they're only going to get better. I think this team has a chance to be good for a while."Maddux, a nine-time All-Star while pitching for the Atlanta Braves and Chicago Cubs, started his major-league career in 1986. His 355 victories rank eighth in major league history, one more than Roger Clemens, with Maddux earning his final win by holding the San Francisco Giants to one run over six innings on Sept. 27,The Dodgers acquired him from the San Diego Padres in August -- the second time in three years the Dodgers traded for him to fortify their rotation in a pennant stretch -- and he went 2-4 with a 5.09 earned-run average in seven starts.Every 300-game winner eligible for the Hall of Fame has been inducted, with Maddux, Clemens and Tom Glavine not yet eligible.Maddux also won his 18th Gold Glove this year.Shaikin is a Times staff writer.
Canned Juice: O.J. Simpson headed to prison for up to 21 years
The former football great was sentenced Friday to up to 21 years behind bars for a botched robbery in Las Vegas, ending his life as a free man 13 years after he was acquitted of murdering his ex-wife and her friend.
He must serve at least six years before being eligible for parole.
Before being sentenced an emotional Simpson apologized for his actions in a soft, hoarse voice and begged Clark County Judge Jackie Glass for leniency.
"I didn't want to steal from anyone," said Simpson, whose lawyers sought the minimum sentence of 6-to-17 years. "I'm sorry, sorry
http://www.nydailynews.com/news/us_world/2008/12/05/2008-12-05_canned_juice_oj_simpson_headed_to_prison.html
He must serve at least six years before being eligible for parole.
Before being sentenced an emotional Simpson apologized for his actions in a soft, hoarse voice and begged Clark County Judge Jackie Glass for leniency.
"I didn't want to steal from anyone," said Simpson, whose lawyers sought the minimum sentence of 6-to-17 years. "I'm sorry, sorry
http://www.nydailynews.com/news/us_world/2008/12/05/2008-12-05_canned_juice_oj_simpson_headed_to_prison.html
Thursday, December 4, 2008
Lower mortgage rates not the answer??
NEW YORK (CNNMoney.com) -- The government finally realizes that it has to address the problems in the housing market. Unfortunately, it seems officials are considering going at it the wrong way.
According to several reports, the Treasury Department is considering a plan to drive down mortgage rates as low as 4.5%. It would do this by purchasing mortgage-backed securities from the now essentially nationalized mortgage financing giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500).
Low rates, the thinking goes, would make mortgage payments more affordable and get home sales moving again.
The plan misses on a few fronts, however.
"The level of mortgage rates is not the main problem in the housing market," said Dean Maki, co-head of U.S. economics research with Barclays Capital.
http://money.cnn.com/2008/12/04/markets/thebuzz/?postversion=2008120418
According to several reports, the Treasury Department is considering a plan to drive down mortgage rates as low as 4.5%. It would do this by purchasing mortgage-backed securities from the now essentially nationalized mortgage financing giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500).
Low rates, the thinking goes, would make mortgage payments more affordable and get home sales moving again.
The plan misses on a few fronts, however.
"The level of mortgage rates is not the main problem in the housing market," said Dean Maki, co-head of U.S. economics research with Barclays Capital.
http://money.cnn.com/2008/12/04/markets/thebuzz/?postversion=2008120418
Wednesday, December 3, 2008
Home Shoppers Rush In As Mortgage Rates Fall
A editorial in todays USA Today references the mortgage rush that has occurred in the past week.
Telephones are ringing — and ringing — at mortgage brokers' offices around the country after this week's sharp drop in mortgage rates. Average rates on 30-year fixed-rate mortgages fell to 5.97%, down from 6.33% the week before, according to Bankrate.com. Some brokers report rates as low as 5.25%. Borrowers with a $200,000 loan, for example, would save about $63 a month if their interest rate dropped to 5.5% from 6%. Credit the Federal Reserve's announcement this week that it will buy $500 billion in mortgage-backed securities held by Fannie Mae and Freddie Mac, helping the two mortgage-finance giants increase the pool of money available to banks and other lenders to make new mortgages. "It is pretty remarkable stuff," says Bob Walters, the chief economist at Quicken Loans, where applications quadrupled Tuesday from Monday.
"Some people might be trying to hold out for even lower rates," he says, "but in 30 or 40 years, we haven't seen them go much beneath these levels. They could, but you're betting against history." Mortgage professionals used to 10 applications a day may have gotten 200 on Tuesday, says Brian Koss, a managing director of Mortgage Network in Danvers, Mass.
"This is really craziness," Koss says. "This news broke the logjam on interest rates that allowed rates to drop significantly." Koss recommends that borrowers who find an attractive rate move fast to lock it in. "If the number works, lock it, and lock it in for 60 days. Drop everything you are doing, get the mortgage professional all of the paperwork they need, so you don't run out of time," he says. Other mortgage professionals say they're seeing an uptick in applications, but the rates should remain low so people can apply when they're ready. "Any time you have action like that taking place in Washington," said Jim Sahnger, a mortgage broker with Palm Beach Financial Network, "it takes awhile to get to Main Street. As we're going into the holidays, people are more focused on buying turkeys than filling out a mortgage application."
But the customer surge comes to an industry decimated by business failures and job losses. There are fewer people to handle loans and less money to lend. Lending standards are higher, too. "It's like someone saying, 'Hey there is free food around the corner!' You don't realize it is free food for 50 — not 500," Koss says.
Telephones are ringing — and ringing — at mortgage brokers' offices around the country after this week's sharp drop in mortgage rates. Average rates on 30-year fixed-rate mortgages fell to 5.97%, down from 6.33% the week before, according to Bankrate.com. Some brokers report rates as low as 5.25%. Borrowers with a $200,000 loan, for example, would save about $63 a month if their interest rate dropped to 5.5% from 6%. Credit the Federal Reserve's announcement this week that it will buy $500 billion in mortgage-backed securities held by Fannie Mae and Freddie Mac, helping the two mortgage-finance giants increase the pool of money available to banks and other lenders to make new mortgages. "It is pretty remarkable stuff," says Bob Walters, the chief economist at Quicken Loans, where applications quadrupled Tuesday from Monday.
"Some people might be trying to hold out for even lower rates," he says, "but in 30 or 40 years, we haven't seen them go much beneath these levels. They could, but you're betting against history." Mortgage professionals used to 10 applications a day may have gotten 200 on Tuesday, says Brian Koss, a managing director of Mortgage Network in Danvers, Mass.
"This is really craziness," Koss says. "This news broke the logjam on interest rates that allowed rates to drop significantly." Koss recommends that borrowers who find an attractive rate move fast to lock it in. "If the number works, lock it, and lock it in for 60 days. Drop everything you are doing, get the mortgage professional all of the paperwork they need, so you don't run out of time," he says. Other mortgage professionals say they're seeing an uptick in applications, but the rates should remain low so people can apply when they're ready. "Any time you have action like that taking place in Washington," said Jim Sahnger, a mortgage broker with Palm Beach Financial Network, "it takes awhile to get to Main Street. As we're going into the holidays, people are more focused on buying turkeys than filling out a mortgage application."
But the customer surge comes to an industry decimated by business failures and job losses. There are fewer people to handle loans and less money to lend. Lending standards are higher, too. "It's like someone saying, 'Hey there is free food around the corner!' You don't realize it is free food for 50 — not 500," Koss says.
Tuesday, November 25, 2008
Rates Drop Lowest Since January 08'
Rates have plunged this morning in response to an announcement by the Federal Reserve that it is initiating programs to purchase mortgage-backed securities backed by government-sponsored enterprises and direct obligations of the GSEs.
The Fed said that it would purchase up to $500 billion of mortgage-backed securities beginning before year's end, and up to $100 billion of direct obligations of the GSEs beginning next week. The Fed said that the actions were taken "to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally. The Fed's $500 billion in MBS purchases will far exceed the roughly $50 billion of MBS the Treasury has thus far purchased through its MBS purchase program. The $100 billion of agency purchases represent about 5% of the debentures outstanding for Fannie, Freddie, and the Federal Home Loan Banks.
We don't know yet how it is that the Fed will finance its $600 billion of purchases. What we do know is that it can't do it with its current Treasury holdings, which total a comparatively smaller $489 billion, a level that has persisted for about 6 months. In other words, the Fed is unlikely to draw down its Treasuries much if at all in order to pay for its planned $600 billion of purchases. The Fed will instead expand its balance sheet and its actions will boost the amount of bank reserves, a powerful act that will ultimately fuel an expansion of bank credit. The downside to these actions is its potential impact on the value of the U.S. dollar, which could fall if investors believe the U.S. is creating excessive supplies of dollars.
Oddly, Treasury yields have fallen despite gains in equities and improvements in the credit markets. The Treasury rally is related to the rally in the mortgage market. When mortgage rates fall, mortgages are prepaid faster because an increasing number of people refinance their homes and there is usually some relative improvement in home purchase activity.
This means that holders of mortgage securities will be paid back faster, a situation that results in more cash in the hands of portfolio managers who would rather maintain a steady level of average maturities in their portfolios. To recalibrate their portfolios, portfolio managers purchase Treasuries to boost their average maturity levels.
CNBC http://www.cnbc.com/id/27908660
The Fed said that it would purchase up to $500 billion of mortgage-backed securities beginning before year's end, and up to $100 billion of direct obligations of the GSEs beginning next week. The Fed said that the actions were taken "to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally. The Fed's $500 billion in MBS purchases will far exceed the roughly $50 billion of MBS the Treasury has thus far purchased through its MBS purchase program. The $100 billion of agency purchases represent about 5% of the debentures outstanding for Fannie, Freddie, and the Federal Home Loan Banks.
We don't know yet how it is that the Fed will finance its $600 billion of purchases. What we do know is that it can't do it with its current Treasury holdings, which total a comparatively smaller $489 billion, a level that has persisted for about 6 months. In other words, the Fed is unlikely to draw down its Treasuries much if at all in order to pay for its planned $600 billion of purchases. The Fed will instead expand its balance sheet and its actions will boost the amount of bank reserves, a powerful act that will ultimately fuel an expansion of bank credit. The downside to these actions is its potential impact on the value of the U.S. dollar, which could fall if investors believe the U.S. is creating excessive supplies of dollars.
Oddly, Treasury yields have fallen despite gains in equities and improvements in the credit markets. The Treasury rally is related to the rally in the mortgage market. When mortgage rates fall, mortgages are prepaid faster because an increasing number of people refinance their homes and there is usually some relative improvement in home purchase activity.
This means that holders of mortgage securities will be paid back faster, a situation that results in more cash in the hands of portfolio managers who would rather maintain a steady level of average maturities in their portfolios. To recalibrate their portfolios, portfolio managers purchase Treasuries to boost their average maturity levels.
CNBC http://www.cnbc.com/id/27908660
Tuesday, November 11, 2008
Learn how The First Time Home Buyer Tax Credit works
Got an Hour…..Come join an expert
David B. Tuck
Licensed Tax Consultant
IRS Enrolled Agent
QuickBooks ProAdvisor
For an informative and free session highlighting:
· Who qualifies and what property is eligible?
· what are the income limits and purchase dates?
· how does it work ?
· What's the difference between a tax credit and zero down?
· What's the repayment amount
· Much more and room for questions!
Compliment Wine and Cheese provided
When: Tuesday November 18th 4:30pm
Where: The Park Towers 13115 NE Fourth St #123 Vancouver, WA 98664
Please RSVP by Friday November 14th
Call Will Amorin @ 360-931-0584
David B. Tuck
Licensed Tax Consultant
IRS Enrolled Agent
QuickBooks ProAdvisor
For an informative and free session highlighting:
· Who qualifies and what property is eligible?
· what are the income limits and purchase dates?
· how does it work ?
· What's the difference between a tax credit and zero down?
· What's the repayment amount
· Much more and room for questions!
Compliment Wine and Cheese provided
When: Tuesday November 18th 4:30pm
Where: The Park Towers 13115 NE Fourth St #123 Vancouver, WA 98664
Please RSVP by Friday November 14th
Call Will Amorin @ 360-931-0584
Monday, November 10, 2008
Loan Modifications
A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.
Question 1: In utilizing the Loan Modification option to bring an asset current, can the mortgagee include all fees and corporate advances?
Answer: Mortgagee Letter 2008-21 states in part: Legal fees and related foreclosure costs for work actually completed and applicable to the current default episode may be capitalized into the modified principal balance.
Question 2: May a mortgagee perform an interior inspection of the property if they have concerns about property condition?
Answer: Yes, the mortgagee may conduct any review it deems necessary to verify that the property has no physical conditions which adversely impact the mortgagor's continued ability to support the modified mortgage payment.
Question 3: Can a mortgagee include late charges in the Loan Modification?
Answer: Mortgagee Letter 2008-21 states that accrued late charges should be waived by the mortgagee at the time of the Loan Modification.
Question 4: When utilizing a Loan Modification option, can a mortgagee capitalize an escrow advance for Homeowner's Association fees?
Answer: HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states: Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage.
Question 5: Is there a new basis interest rate which mortgagees may assess when completing a Loan Modification?
Answer: Yes, Mortgagee Letter 2008-21 states that the new basis interest rate is 200 points above the monthly average yield on U.S. Treasury Securities, adjusted to a constant maturity of 10 years.
Question 6: Will HUD subordinate a Partial Claim, should a mortgagor subsequently default and qualify for a Loan Modification?
Answer: If a mortgagor subsequently defaults and qualifies for a Loan Modification, HUD will subordinate the Partial Claim.
Question 7: Are mortgagees required to perform an escrow analysis when completing a Loan Modification?
Answer: Yes, mortgagees are to perform a retroactive escrow analysis at the time the Loan Modification to ensure that the delinquent payments being capitalized reflect the actual escrow requirements required for those months capitalized.
Question 8: Is the mortgagor eligible for the upfront premium refund at payoff of a modified loan?
Answer: It depends upon when the closing date occurred. For assets closed:
After July 1, 1991 but before January 1, 2001, the 7-year unearned premium refund schedule shown in Mortgagee Letter 1994-1 remains in effect,
On or after January 1, 2001 that are subsequently refinanced, the 5-year refund schedule shown in the attachment of Mortgagee Letter 2000-46 applies, or
On or after December 8, 2004, refunds of upfront MIP are eliminated except, when the mortgagor refinances to another FHA insured mortgage. The refund schedule attached to Mortgagee Letter 2005-03 has been modified to a 3-year period.
Question 9: Can a mortgagee qualify an asset for the Loan Modification option when the mortgagor is unemployed, the spouse is employed, but the spouse name is not on the mortgage?
Answer: Based upon this scenario, the mortgagee should conduct a financial review of the household income and expenses to determine if surplus income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrearage. Once this process has been completed the mortgagee should then consult with their legal counsel to determine if the asset is eligible for a Loan Modification since the spouse is not on the original mortgage.
This information was provide directly from HUD. For more information - please refer to the link provided.
http://www.hud.gov/offices/hsg/sfh/nsc/faqlm.cfm
Question 1: In utilizing the Loan Modification option to bring an asset current, can the mortgagee include all fees and corporate advances?
Answer: Mortgagee Letter 2008-21 states in part: Legal fees and related foreclosure costs for work actually completed and applicable to the current default episode may be capitalized into the modified principal balance.
Question 2: May a mortgagee perform an interior inspection of the property if they have concerns about property condition?
Answer: Yes, the mortgagee may conduct any review it deems necessary to verify that the property has no physical conditions which adversely impact the mortgagor's continued ability to support the modified mortgage payment.
Question 3: Can a mortgagee include late charges in the Loan Modification?
Answer: Mortgagee Letter 2008-21 states that accrued late charges should be waived by the mortgagee at the time of the Loan Modification.
Question 4: When utilizing a Loan Modification option, can a mortgagee capitalize an escrow advance for Homeowner's Association fees?
Answer: HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states: Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage.
Question 5: Is there a new basis interest rate which mortgagees may assess when completing a Loan Modification?
Answer: Yes, Mortgagee Letter 2008-21 states that the new basis interest rate is 200 points above the monthly average yield on U.S. Treasury Securities, adjusted to a constant maturity of 10 years.
Question 6: Will HUD subordinate a Partial Claim, should a mortgagor subsequently default and qualify for a Loan Modification?
Answer: If a mortgagor subsequently defaults and qualifies for a Loan Modification, HUD will subordinate the Partial Claim.
Question 7: Are mortgagees required to perform an escrow analysis when completing a Loan Modification?
Answer: Yes, mortgagees are to perform a retroactive escrow analysis at the time the Loan Modification to ensure that the delinquent payments being capitalized reflect the actual escrow requirements required for those months capitalized.
Question 8: Is the mortgagor eligible for the upfront premium refund at payoff of a modified loan?
Answer: It depends upon when the closing date occurred. For assets closed:
After July 1, 1991 but before January 1, 2001, the 7-year unearned premium refund schedule shown in Mortgagee Letter 1994-1 remains in effect,
On or after January 1, 2001 that are subsequently refinanced, the 5-year refund schedule shown in the attachment of Mortgagee Letter 2000-46 applies, or
On or after December 8, 2004, refunds of upfront MIP are eliminated except, when the mortgagor refinances to another FHA insured mortgage. The refund schedule attached to Mortgagee Letter 2005-03 has been modified to a 3-year period.
Question 9: Can a mortgagee qualify an asset for the Loan Modification option when the mortgagor is unemployed, the spouse is employed, but the spouse name is not on the mortgage?
Answer: Based upon this scenario, the mortgagee should conduct a financial review of the household income and expenses to determine if surplus income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrearage. Once this process has been completed the mortgagee should then consult with their legal counsel to determine if the asset is eligible for a Loan Modification since the spouse is not on the original mortgage.
This information was provide directly from HUD. For more information - please refer to the link provided.
http://www.hud.gov/offices/hsg/sfh/nsc/faqlm.cfm
Wednesday, November 5, 2008
An FHA Program Allows You To Buy A Foreclose Home That Has Damage And Come Out On Top
Did you know that you can know purchase a home that has been damaged and recieve up to $35,000 addtional for repairs!??
Through FHA - a program called 203K Rehab Loan will allow you to purchase a home that is in foreclosure and has been damaged, whether it's minor or serious. It will allow you to borrow up to $35,000 in additional funds to repair the damaged home. Here's how it works, directly from HUD.
Eligible Property
"The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.
The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and we intend to continue to strongly support the program and the lenders that participate in it.
Many lenders have successfully used the Section 203(k) program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local government agencies, have found ways to combine Section 203(k) with other financial resources, such as HUD's HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. Several state housing finance agencies have designed programs, specifically for use with Section 203(k) and some lenders have also used the expertise of local housing agencies and nonprofit organizations to help manage the rehabilitation processing.
The Department also believes that the Section 203(k) program is an excellent means for lenders to demonstrate their commitment to lending in lower income communities and to help meet their responsibilities under the Community Reinvestment Act (CRA). HUD is committed to increasing homeownership opportunities for families in these communities and Section 203(k) is an excellent product for use with CRA-type lending programs.
If you have questions about the 203(k) program or are interested in getting a 203(k) insured mortgage loan, we suggest that you get in touch with an FHA-approved lender in your area or the Homeownership Center in your area.Introduction
Section 10 1 (c) (1) of the Housing and Community Development Amendments of 1978 (Public Law 95557) amends Section 203(k) of the National Housing Act (NHA). The objective of the revision is to enable HUD to promote and facilitate the restoration and preservation of the Nation's existing housing stock. The provisions of Section 203(k) are located in Chapter II of Title 24 of the Code of Federal Regulations under Section 203.50 and Sections 203.440 through 203.494. Program instructions are in HUD Handbook 4240-4. HUD Handbooks may be ordered online from The HUD Compendium or from HUDCLIPS. 203(k) - How It Is Different
Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.Eligible Property
To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.
Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.
In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.
An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation.
A 203(k) mortgage may be originated on a "mixed use" residential property provided: (1) The property has no greater than 25 percent (for a one story building); 33 percent (for a three story building); and 49 percent (for a two story building) of its floor area used for commercial (storefront) purposes; (2) the commercial use will not affect the health and safety of the occupants of the residential property; and (3) the rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property."
How the Program Can Be Used
"This program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways:
To purchase a dwelling and the land on which the dwelling is located and rehabilitate it.
To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it.
To refinance existing indebtedness and rehabilitate such a dwelling.
To purchase a dwelling and the land on which the dwelling is located and rehabilitate it, and to refinance existing indebtedness and rehabilitate such a dwelling, the mortgage must be a first lien on the property and the loan proceeds (other than rehabilitation funds) must be available before the rehabilitation begins.
To purchase a dwelling on another site, move it onto a new foundation and rehabilitate it, the mortgage must be a first lien on the property; however, loan proceeds for the moving of the house cannot be made available until the unit is attached to the new foundation."
For more information please feel free to contact me or refer to this site http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm
Through FHA - a program called 203K Rehab Loan will allow you to purchase a home that is in foreclosure and has been damaged, whether it's minor or serious. It will allow you to borrow up to $35,000 in additional funds to repair the damaged home. Here's how it works, directly from HUD.
Eligible Property
"The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.
The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and we intend to continue to strongly support the program and the lenders that participate in it.
Many lenders have successfully used the Section 203(k) program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local government agencies, have found ways to combine Section 203(k) with other financial resources, such as HUD's HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. Several state housing finance agencies have designed programs, specifically for use with Section 203(k) and some lenders have also used the expertise of local housing agencies and nonprofit organizations to help manage the rehabilitation processing.
The Department also believes that the Section 203(k) program is an excellent means for lenders to demonstrate their commitment to lending in lower income communities and to help meet their responsibilities under the Community Reinvestment Act (CRA). HUD is committed to increasing homeownership opportunities for families in these communities and Section 203(k) is an excellent product for use with CRA-type lending programs.
If you have questions about the 203(k) program or are interested in getting a 203(k) insured mortgage loan, we suggest that you get in touch with an FHA-approved lender in your area or the Homeownership Center in your area.Introduction
Section 10 1 (c) (1) of the Housing and Community Development Amendments of 1978 (Public Law 95557) amends Section 203(k) of the National Housing Act (NHA). The objective of the revision is to enable HUD to promote and facilitate the restoration and preservation of the Nation's existing housing stock. The provisions of Section 203(k) are located in Chapter II of Title 24 of the Code of Federal Regulations under Section 203.50 and Sections 203.440 through 203.494. Program instructions are in HUD Handbook 4240-4. HUD Handbooks may be ordered online from The HUD Compendium or from HUDCLIPS. 203(k) - How It Is Different
Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.Eligible Property
To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.
Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.
In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.
An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation.
A 203(k) mortgage may be originated on a "mixed use" residential property provided: (1) The property has no greater than 25 percent (for a one story building); 33 percent (for a three story building); and 49 percent (for a two story building) of its floor area used for commercial (storefront) purposes; (2) the commercial use will not affect the health and safety of the occupants of the residential property; and (3) the rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property."
How the Program Can Be Used
"This program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways:
To purchase a dwelling and the land on which the dwelling is located and rehabilitate it.
To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it.
To refinance existing indebtedness and rehabilitate such a dwelling.
To purchase a dwelling and the land on which the dwelling is located and rehabilitate it, and to refinance existing indebtedness and rehabilitate such a dwelling, the mortgage must be a first lien on the property and the loan proceeds (other than rehabilitation funds) must be available before the rehabilitation begins.
To purchase a dwelling on another site, move it onto a new foundation and rehabilitate it, the mortgage must be a first lien on the property; however, loan proceeds for the moving of the house cannot be made available until the unit is attached to the new foundation."
For more information please feel free to contact me or refer to this site http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm
Tuesday, November 4, 2008
The Dollar Gains Against Euro After Obama's Victory
This evening history was made! Whether you voted Democrat or Republican history was made tonight in one of the most emotional events I've ever seen out of an inauguration of a new President. This much needed change has created a aura of joy and confidence back into America and it's a change that can already be seen all over the internet. Here we are, not even an hour after President Elect Obama has made his speech and we're already seeing a turn around in the Japans Nikkei market which is currently up 264 points. This is going to cause good things to happen tomorrow - expect a soar in stock prices a much stronger dollar (which just moments ago gained strength against the Euro!!) and lower interest rates!
I'd like to hear your feed back on the current President Elect Obama and how this will affect our future?
I'd like to hear your feed back on the current President Elect Obama and how this will affect our future?
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