Register Real Estate Advisors

The Federal Housing Authority (FHA) offers two (2) types of home-improvement loans for homebuyers:

• FHA’s 203(k):  This program allows qualified homebuyers to roll the costs of major improvements and upgrades into their home mortgages.  A 203(k) loan begins with a feasibility study, overseen by an approved consultant.  During this process, the consultant determines whether the improvements would be justified upon completion.  (Luxury items and improvements that do not become a permanent part of the real property are not eligible as a cost of the home’s rehab.)  Along with the lender, the consultant monitors the project’s progress and performs a final inspection upon completion.  Escrow is then closed out, and any remainder is paid down against principal;  and,
• FHA’s Streamline 203(k):  FHA’s Streamline 203(k) Buy & Repair Mortgage is an ideal program for clients in need of minor cosmetic repairs on their potential new home.  With a Streamline 203(k) mortgage, the rehab cost is calculated into the original loan balance, resulting in one loan.  The mortgage balance can exceed the purchase price of the property.  The appraiser or home inspector will compile a list of recommended repairs/improvements.  Unlike the Major 203(k) program, Streamline 203(k) eliminates the need for a consultant and consultant’s fees. 

Following are charts which compare the program highlights and the ineligible and eligible repairs and improvements under FHA’s 203(k) Buy & Repair Mortgage and FHA’s Streamline 203(k) Buy & Repair Mortgage:

DALLAS (Dallas Morning News) – Texas’ mortgage delinquency rate in fourth quarter 2011 was about a third of a percentage point higher than in the previous quarter, the Mortgage Bankers Association reported yesterday. During the last three months of 2011, more than 276,000 Texas homeowners (9.07 percent) had missed a mortgage payment. Nationally, the rate was 7.58 percent. According to the mortgage bankers, Texas now has the 14th-worst mortgage delinquency rate among the states. One bright side: Texas’ fourth quarter delinquency rate was less than it was at the end of 2010.

Some people I talk to want to know if they should have their credit “re-aged” before trying to get pre-approved for a mortgage. That is mainly because late fees cause issues when you apply for a mortgage to purchase a home. So what does it mean to get your credit “re-aged?” “Re-aged” is something your creditors can do to your past due credit card accounts to zap them back to currently due and it raises your credit score…sort of. So for example, if you’re three months late on your credit card payments then the creditor can agree to “re-age” your account and those three months will be erased. Those missed payments are forgiven and you no longer incur late fees. However, it also erases your credit for those accounts back to zero years. So if you “re-age” a credit card account that you have had for ten years, you could actually lower your credit score. On the other hand, it will erase those three months of late payments that also hinder your credit. So you really have to get good advice from a sharp lender before you ask anyone to “re-age” your accounts. When an account is “re-aged” you still owe the creditor the same amount of money, but you stop incurring additional late fees and you’re no longer delinquent on the account. It’s like getting a fresh start, but the down side is you could potentially hinder your credit score while trying to help it.

So the next question is “How do you get a creditor to ‘re-age’ an account?” To be considered for “re-aging” you have to demonstrate a renewed willingness and ability to pay, the credit card should be atleast nine months old, and you should have made atleast three consecutive minimum payments. There are limits on the number of times an account can be “re-aged.” A creditor may only do it once in a 12-month period and twice in a five year period for open-ending accounts. “Re-aging” an account is not a requirement, it is a nice gesture your creditor may do for you. The guidelines for doing such a thing to one’s credit are set up by the Federal Financial Institutions-Examinations Council and is outlined in it’s Uniform Retail Credit Classification and Management Policy.

At Register Real Estate Advisors we offer an in-house lender for our customers to help them get pre-approved for a mortgage. Please contact our office today to see if Terry Traylor, our in-house lender, recommends your credit be “re-aged” so that you can qualify to buy a new home while interest rates are at all time lows. We have Realtors standing by to show you houses! 281.288.3500.

HOUSTON (Houston Association of Realtors) – January marked the eighth consecutive month of increased existing home sales for H-Town, according to the Houston Association of Realtors (HAR). The year also opened with a continued decline in active property listings and growth in pending sales, which the association said signals a healthy market with a balanced supply of housing inventory. January sales of single-family homes were up 9.2 percent over January 2011, the association found. All segments of the housing market grew except the luxury segment (homes starting at $500,000). “The January report shows continued strength in the Houston housing market that we began seeing in the latter part of 2011, and it gives us cause for optimism as we look ahead to the typically active spring and summer buying months,” said Wayne A. Stroman, HAR chairman and CEO of Stroman Realty. “We have also seen more jobs being filled locally, and you generally don’t experience a strong real estate market without healthy employment.” January’s single-family home median price rose 0.9 percent year-over-year to $139,900. The average price of $194,765 was statistically unchanged from January 2011. Foreclosure property sales reported in the MLS increased 22 percent year-over-year in January. Foreclosures made up 27.8 percent of all property sales, which is higher than the 2011 average of 21 percent. The median price of foreclosures in January was flat at $82,550. January sales of all property types in Houston totaled 3,632, up 4.8 percent compared with January 2011. Total dollar volume for properties sold during the month rose 5.9 percent to $683 million versus $645 million a year earlier.

The Texas Veterans Land Board offers many benefits for both active duty and national guard members. If you are on active duty stationed in Texas or you’re a national guard member or reservist, come home to the benefits you deserve.

Register Real Estate Advisors has many agents that are Texas Veteran Land Board Certified and can also help you with VA Loans. Call today 281.288.3500 to learn more and find a Realtor that can best suit your needs.

The Texas Veterans Land Board can offer land loans up to $80,000 with a one acre minimum. They offer home loans up to $325,000. So call us today to get started using your Texas Veterans Benefits on your next land or home purchase!

Are you in need of a short sale, but have a second lien holder on your home? Having a second lien does make it more difficult to do a short sale. The first lien holder will decide how much money the second lienholder will get paid off if the short sale is accepted. So what if the second lienholder won’t take that amount from the first lienholder? It can be a mess!

So you had your Realtor do a short sale. She found a buyer after advertising for months. You and your Realtor and the first lienholder negotiated the contract. Everyone is happy except the second lienholder. You see, if the second lienholder won’t take the payoff from the first lienholder, then clear title cannot be transferred to the buyer, which means the short sale cannot be done. So, the home goes into foreclosure or the sellers have to file bankruptsy. The short sale is over.

In the past I had a seller who was in this situation. The seller, their first lienholder of thier mortgage, and the buyer were all in agreement on the short sale. The first lien holder, the bank, was going to give $3K to payoff the second lienholder. But the second would not take the $3K. They wanted their full amount due (which if the sellers could pay they would not be doing a short sale!) So the home was not able to sale. Everyone loses. The Realtor loses commission even though they found a buyer. The seller loses their home to foreclosure. The bank has to pay additional fees for the foreclosure. The buyer lost the house they wanted and could afford to buy. The second lienholder walks away with nothing. It’s such a shame when this happens.

If you are interested in doing a short sale, please contact your Realtor early on in the process. Once a foreclosure date has been set, it is hard to get the bank to extend it out to allow time to market the property. If you have a second lienholder, tell your Realtor in the beginning so they can start the negotiations between the second and first lienholders. It can be done. I have seen many second lienholders take the settlement from the first lienholder. It usually works out, but unfortunately, sometimes it does not. Make sure you use a Certified Distressed Property Expert if you need to do a short sale. There are so many things that can cause a short sale to foreclose. Make sure you have a Realtor that can get it closed for you! At RREA, we have many Realtors with the CDPE designation that have closed many short sales. Please call today if you or someone you know is having a mortgage crisis. We can help!

WASHINGTON (U.S. Department of Housing and Urban Development) – Citimortgage Inc., a subsidiary of Citibank N.A., has agreed to pay $158.3 million in damages to the U.S. Department of Housing and Urban Development (HUD) under the False Claims Act after charges of mortgage misconduct. The government’s complaint of over six years of wrongdoing in connection with Citimortgage’s participation in the Federal Housing Administration (FHA) Direct Endorsement Lender Program ended in a settlement approved by U.S. District Judge Victor Marrero. Citimortgage admitted responsibility for failing to comply with HUD-FHA loan requirements and to falsifying FHA mortgage insurance eligibility documents. The case against Citimortgage is just one in a series filed against lenders who ignored HUD requirements for approving government-backed loans.

Como parte de un arreglo entre 49 estados y cinco de los bancos más grandes de la nación, algunos dueños de una casa en problemas de Texas recibirán préstamos re-estructurados con pagos de hipoteca más bajos. Otros quienes hogares fueron reposesiones pueden conseguir $2.000 cheques.

El convenio del reparto $25 mil millones, de todos los estados de los E.E.U.U. excepto Oklahoma, proviene por el manejo inadecuado de reposesiones (foreclosures) por por Ally/GMAC, Bank of America, Citigroup, JP Morgan Chase, y Wells Fargo. Nueve otras instituciones pueden tomar parte del acuerdo, empujando el convenio nacional que suman $5 mil millones más.

Muchos prestamistas de hipoteca admitieron sus manejos inadecuados en el proceso de reposesiones y ejecuciones de hipotecas, incluyendo no poder verificar documentos subyacentes, firmando documentos sin el repaso de ellos, y usar nombres ficticios para firmar documentos.

El arreglo evita que los estados demanden a los prestamistas de hipoteca por estas actividades. Sin embargo, no para a dueños de una casa de perseguir remedios legales en una Corte Civil.

El hecho que los Téjanos recibirán alrededor de 1% del total del a pesar de la gran población del estado puede ser un resultado de que el número de reposesiones o ejecución de hipotecas en Texas es menos que mitad del promedio nacional, según la base de información Core Logic.

Las personas elegibles para las modificaciones de préstamos o de mensualidades recibirán cartas durante los próximos seis a nueve meses. Más información está disponible en NationalMortgageSettlement.com y de un FAQ por la oficina del Procurador General de la República de Texas.

Traducido por Esly Cruz y tomado del artículo original (Settlement provides $287 million in mortgage relief to Texans / Feb. 10, 2012/ www.texasrealestate.com)

Link to Article

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.

WASHINGTON (Center for Housing Policy) – Most working Americans probably expect housing costs to take a substantial chunk out of their paychecks. But that chunk seems to be getting bigger.
According to a new report from the Center for Housing Policy, nearly one in four working U.S. households spends more than half of their total income on housing. One reason for this is that incomes are shrinking.
Between 2008 and 2010, incomes for working homeowners slid more than twice as much as housing costs. In fact, incomes for working homeowners fell even more sharply than they did for working renters.
“The data show that homeowners have been hit hard by the housing crisis in more ways than just lost equity,” said Jeffrey Lubell, executive director of the Washington-based center. “Many working homeowners have been laid off or had their hours cut.”
Lubell also said most homeowners bought their homes at a time when housing prices were much higher than they are today.
“As a result, their housing costs have not declined nearly as much as you would expect from looking at the broader market declines in home sale prices,” he said.
Meanwhile, renters have seen rents go up thanks to increased demand for apartment living.
“More and more people are interested in renting,” said Laura Williams, who authored the report. “Some prefer it because it allows them to be more mobile in a tough job market. Others are postponing purchasing a home or facing difficulties obtaining a mortgage. Given the long lead times involved in responding to increased demand with increased supply, the rental market has tightened somewhat and rents increased.”