Register Real Estate Advisors

If you’re not behind on your mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through MHA’s Home Affordable Refinance Program (HARP).  HARP is designed to help you get a new, more affordable, more stable mortgage.  HARP refinance loans require a loan application and underwriting process, and refinance fees apply.

Below are some of the HARP criteria:

• You have a Freddie Mac or Fannie Mae Loan.
• Your mortgage was sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
• The mortgage hasn’t been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
• The current loan-to-value (LTV) ratio must be greater than 80%.
• You must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.

Contact your mortgage servicer (the company to which you make your mortgage payments) to see if you are eligible for HARP.  Also ask your mortgage servicer if they participate in HARP.  Not all mortgage servicers do.  Contact Fannie Mae or Freddie Mac for help in determining if you may be eligible for HARP.

This program ends December 31, 2013.

Wondering why your neighbor that hasn’t paid a mortgage payment in a year is still living nextdoor or down the street from you?  You might not think it’s fair since you pay your mortgage payment every month, but Freddie Mac is allowing forebearance on mortgage payments for up to 12 months.  In some cases it’s longer than 12 months.  Freddie Mac is trying to help unemployed homeowners, hoping they will find employment and be able to keep thier home.  Below is an article about the help Freddie Mac is offering to homeowners.

By Ronald D. Orol

In today’s real estate market, there are many different mortgages available for you to choose from. If you are thinking about purchasing a home, you can call RREA’s in house lender today to see what type of loan products you qualify for. Our in house lender, Terry Traylor, can help you determine your mortgage limit, interest rate, and what product will best meet your home purchasing needs.

There are a variety of mortgage loans available. There are Jumbos for loans over $417K. There are loans for investors that allow homes to be flipped before the 90 day limit. For first time home buyers, there are Down Payment Assistance Loans that help with closing costs. For Foreign Nationals that are non-U.S. Citizens there are loans that allow them to purchase second homes in the U.S. With the 203K Loan people can make improvements before or after closing. The HomePath Program was designed for Foreclosed Fannie Mae owned properties. The REO Extended Lock Program helps homeowners purchase a short sale or REO property by allowing an extended interest rate lock. The credit 580 Program increases the FHA guidelines to include borrowers with credit scores between 580-639. Dissipating Asset Programs provide asset-rich clients the ability to qualify with no income up to a maximum loan amount of $5 Million while the Pledged Asset Mortgage allows borrowers to pledge eligible assets in lieu of a down payment, second mortgage or a home equity loan to cover normal down payment requirements. And you thought there were only FHA, Conventional, and VA Loans! Today’s lender has lots of options for you to take advantage of. Call today to find out more -281-288-3500.

WASHINGTON (Federal Housing Finance Agency) – The Federal Housing Finance Agency (FHFA) has set new objectives for the conservatorships of Fannie Mae and Freddie Mac. The three strategic goals for the government-sponsored enterprises include building new infrastructure for the secondary mortgage market, simplifying and shrinking their marketplace presence, and continuing foreclosure prevention activities as well as mortgage credit availability.
Fannie Mae and Freddie Mac have received more than $180 billion in taxpayer support since being placed in conservatorship in September 2008.
According to the Appraisal Institute, the FHFA is doubtful the money will be repaid in full.

FANNIE MAE: NO EVICTIONS DURING HOLIDAYS WASHINGTON, D.C. (FannieMae.com) – Fannie Mae announced yesterday that it will suspend evictions of foreclosed single-family and two-to four-unit properties from December 19, 2011, through January 2, 2012. During this period, legal and administrative proceedings for evictions may continue, but families living in foreclosed properties will be permitted to remain in the home. Homeowners with Fannie Mae-backed loans can call 1-800-7FANNIE or visit www.knowyouroptions.com for information and resources on foreclosure prevention options, including contact information for the Fannie Mae Mortgage Help Center or a HUD-approved counseling agency in their area.

WASHINGTON, D.C. (Realtor.org)
– Fannie Mae has implemented new measures that will require mortgage
servicers to act more quickly and consistently in helping troubled homeowners
avoid foreclosure.

“We want homeowners to be able to understand their options when facing
foreclosure, and we want servicers to reach homeowners early in the process,
communicate frequently and clearly, and help homeowners avoid
foreclosure,” said Jeff Hayward, senior vice president of Fannie Mae’s
national servicing organization.

Among the changes, mortgage servicers will be required to:

• contact
  homeowners verbally and in writing within 120 days after a loan first
  becomes delinquent;
• complete
  a loan modification or other option that keeps the borrower in their home
  or helps the borrower avoid the foreclosure process;
• follow
  a clear timeline if foreclosure is unavoidable and begin the
  foreclosure process once a loan has been delinquent for more than 120
  days; and
• make
  it clear when a property in the foreclosure process will be sold.

WASHINGTON, D.C. (Reuters) – After suffering $13.1 billion in losses in first quarter 2010, Fannie Mae has asked the government for an additional $8.4 billion in aid.

 With this request, Fannie Mae, the nation’s largest residential mortgage finance company, will have received more than $84.6 billion in federal aid.

 Less than a week ago, Freddie Mac said it would need $10.6 billion in government funds after losing $8 billion in the first quarter.

What it means to homebuyers

The Housing & Economic Recovery Act of 2008 introduced changes in the mortgage industry that affected the housing market. Below is a brief summary of the legislation & what it means for homebuyers.

Purpose of the legislation:

• Make it easier to buy or sell a home
• Slow down the rate of foreclosures
• Ensure the financial stability of Fannie Mae & Freddie Mac

Highlights:

• Higher permanent loan limits for conventional, FHA, & VA Loans
• Tax credit for first-time homebuyers – up to $7500 in the purchase year, for homes purchased between April 9, 2008 and July 1, 2009
• Modernization of FHA Loan Programs – including a 3.5% minimum down payment
• Fannie Mae & Freddie Mac get a financial boost from the U.S. Treasury, & they will have a new regulator with broader authority
• FHA “HOPE” Rescue Plan – refinancing for homeowners at risk of foreclosure

What this means to homebuyers:

The higher loan limits could help buyers obtain more affordable financing; however, the effects will vary by geographical location – so ask your local Mortgage Adviser for details. Since the new permanent limits are less aggressive than the “conforming plus” limits that expired on December 31, 2008, buyers must act soon to take advantage of current higher limits.

The initial cash savings from the tax credit may be very atractive to many first-time homebuyers; however, buyers must act soon to take advantage of the tax credit by closing on a new home before July 1, 2009.

Help for Fannie Mae & Freddie Mac makes it easier to buy or sell a home by boosting investor & consumer confidence in the housing market. THe FHA “HOPE” Rescue Program may help some homeowners avoid foreclosure, potentially reducing the inventory of homes entering the market. This is good news for everyone.

Contact your Coldwell Banker REALTOR to learn more.

MAE’S, MAC’S NEW LOAN PROGRAM

WASHINGTON (Dallas Morning News) – In an effort to push down mounting foreclosures, Fannie Mae and Freddie Mac announced on Tuesday a new mortgage program that would expedite the process for modifying loans, which could help hundreds of thousands of homeowners avoid foreclosure.

Qualifying borrowers would have their interest rates lowered or loan principal reduced. But they would eventually have to pay back the full loan, either by extending the life of the payments or adding a one-time payment when the house is sold. Monthly payments would not exceed 38 percent of a household’s income.

Borrowers would have to show that they can afford a new loan, but they wouldn’t have to undergo the underwriting and credit-score process.

To qualify for the loan program:

• mortgages must be owned or guaranteed by Fannie Mae and Freddie Mac, who own or guarantee 51 percent of the country’s single-family mortgages;
• borrowers must have missed three or more payments; and
• borrowers must contact their mortgage servicer and provide the household’s monthly gross income, any association dues or fees, and proof of recent job loss or economic hardship.

TEXAS STILL GOOD V

Coldwell Banker Mortgage Update October 2008 Volume 3/Issue 43

We’ve all seen the headlines credit squeeze, credit freeze, credit-system seizures. Mortgage companies are folding left and right and banks seem to be collapsing daily. We are all painfully aware on how severe the global financial breakdown has been, with banks unwilling to lend even to other banks.

But what about mortgages and real estate? Can you still get a home loan with less than a 20 or 30 percent down payment? Or with a credit score below 720?

Absolutely. It would be a big stretch to label housing the sunny side of the market at the moment, but there’s a lot more light here than in most other financial sectors. Consider these facts:

There is no shortage of money for home mortgages, no freezing of credit to purchase or refinance a house. Why? Because the mortgage market effectively has been federalized — at least for the time being. Most of our mortgages are being funded through the (FHA) insurance program, plus Fannie and Freddie. FHA is owned by the federal government, and Fannie and Freddie are operating under federal conservatorship giving all three virtually unlimited funds because their borrowings are fully guaranteed by the Treasury. When we sell loans to these entities we are going to market with pools of loans in the BILLIONS of dollars. Think of it like buying in bulk at a discount club. Our cost per loan is significantly reduced because we work with such large quantities.

Loan terms and credit underwriting standards have been toughened up, but you can still put down 3 percent (3.5 percent after Jan. 1) on an FHA-insured mortgage and 5 percent on most of our conventional loan programs with private mortgage insurance.

FHA’s credit standards are generous and forgiving; the agency exists to help people with less-than-spotless credit histories. Fannie Mae and Freddie Mac have raised their credit-score requirements over the past year, but buyers and refinances with scores in the upper 600s can still qualify for loans having reasonable rates and fees.

Home prices have been pushed back by foreclosures and short sales have rolled back to 2003 levels or lower in many former boom markets. As a result, buyers are coming off the sidelines, making offers and writing contracts. The pending home-sales index jumped by 7.4 percent last month according to the National Association of Realtors.

So the way I see it…The prices of houses have dropped making it affordable for more buyers.

Coldwell Banker Mortgage Company has a huge supply of money and are currently closing loans in 2-3 weeks. Call your Realtor today and you can be in your new home before Thanksgiving!