Archive for the ‘Federal Distressed Homeowner Programs’ category

Help for the Unemployed

April 12, 2010

If you are one of many homeowners who have lost their job, relief from your mortgage payments may be right around the corner. With the help of new guidelines set up by the federal government, some lenders may be forced to offer forbearance.

Forbearance means a lender defers some of a borrower’s payments until a later date. The deferred amount may be all or part of one or more of the  payments that are due. When a lender feels that a borrower’s hardship is only temporary they may consider forbearance.

The new requirements to qualify for forbearance, are a part of Home Affordable Modification Program (HAMP), and may really be a help to homeowners who are out of work.

Forbearance can last a minimum of three months and could extend to six months or longer. After the period of forebearance has expired, and if the homeowner still cannot afford the payments, they will than be considered for a HAMP loan modification or other HAMP programs instead of foreclosure.

For more great reasons to buy a home in 2010, please click on The Best Time to Buy a Home is Now!

If you have been patiently waiting to buy a Hoboken home, now is the time to do it while the home buyer’s tax credit is still in effect. All of the key factors are in place to ensure that your home purchase will be a major, positive life changing event.  With low mortgage rates available, along with the recent passing of the new tax credits, this is the opportunity you have been waiting for. Please click on tax credit information for more details.  Make 2010 the year you purchase your dream home. For more information contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City.  Eddie can be reached at eddie@InvestHoboken.com or 201-344-2886.

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An Extension For HARP

March 8, 2010

The upcoming expiration date of The Home Affordable Refinance Program (HARP) is scheduled for June 10 and will be extended for another year, according to the Federal Housing Finance Agency.

The HARP program was started in April 2009 and has successfully refinanced 190,180 mortgages. Fannie Mae and Freddie Mac are running HARP and its eventual goal is to assist as many borrowers possible with little or no equity in their homes.

There may be many people who are struggling to pay their mortgage but you may be one of many who are eligible for the new Home Buyer Credits. Please go to tax credit information for more details. This opportunity could help change your life for the better.

Allow me to help you explore the many wonderful opportunities to purchase a home in Hoboken. Whether it be a lovely condo, brownstone, Classic Victorian or anything in between; I guarantee you there is a home for you. Please contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, Jersey

Making Home Affordable Program is Ahead of Schedule

October 19, 2009

On October 8, nearly a month earlier than the November 1 dollar-sign-769720-756981deadline set earlier this year, the U.S. Department of the Treasury and U.S. Department of Housing and Urban Development (HUD) announced that more than 500,000 trial loan modifications are in progress under the Making Home Affordable program.

The November 1 deadline was set in July so servicers would work at a faster pace to complete the modifications.

The Administration still believes that more can be done to assist struggling homeowners. Senior Treasury and HUD officials will be meeting to discuss how to improve servicer efficiency and responsiveness to borrowers during the modification process.

The most recent Monthly MHA Program Report, which tracks servicer performance through the month of September – ending September 30, 2009 can be found below.

http://www.treas.gov/press/releases/docs/MHA%20Public%20100809%20Final.pdf.

For more great information go to First Time Home Buyers Are Leading The Way.

To find out all the benefits and options for preventing foreclosure, contact Eddie Perez, Broker-REALTOR, CDPE or Anoir Redouane, REALTOR, CDPE.  Their market includes Hoboken, Jersey City, Weehawken and Union City.  They can be reached at eddie@InvestHoboken.com or 201-344-2886.

Will I Qualify for Refinancing Under Obama Housing Plan

April 17, 2009

With all of the talk about President Obama’s Homeowner Affordability and Stability Plan, have you wondered if you could quailify for refinancing? Following are the main provisions for refinancing:

1. Have a conforming loan backed by Fannie Mae or Freddie Mac. Approximately 60% of single-family “conforming” loans are backed by these two programs. These are the companies that buy the loans from your bank/servicer and then sell them to Wall Street. A conforming loan is one under $417,000 in many areas — or up to $729,500 in certain high-cost areas. Call your lender to find out if you qualify under Obama’s housing plan.

2. Your Loan to Value ratio can now be chp_currency_11as high as 105%. Under current conditions you cannot refinance mortgages where the loan-to-value (LTV) ratio exceeds 80 percent without some form of credit insurance. Under the Obama housing plan, the LTV has been raised to 105%, which means you qualify even if you owe between 80-105% of your mortgage. However, if you are severely “underwater” and owe more than 105% of your home’s value you will not qualify and may have to wait for mortgage relief via other lender driven provisions under the housing plan.

3. Allows borrowers with less than 20% equity in their homes to refinance to the current prevailing rate. However they must meet the above LTV criteria.

4. Timeframe Eligibilty. Only loans that originated on or before January 1, 2009 are eligible for this program. The modification program will be in effect until the end of 2012, but loans can only be adjusted once.

5. Bonus Payments. Borrowers who keep up with their new payments will receive up to $1,000 a year in principal reduction, for up to five years.

6. Modification Threshold. Loan servicers will follow a specified sequence of steps in order to reduce the monthly payment (with government subsidies) to no more than 31% of gross monthly income (DTI). More than 25% of home owners will qualify under the new refinancing criteria, but there are some restrictions to prevent abuse of these new provisions.

If you think you will qualify you should start getting ready to begin the refinancing process as soon as possible. Borrowers can now contact their loan servicers to see whether they are eligible for assistance.

For more information about President Obama’s new plan go to Obama’s Mortgage Rescue Plan or How an FHA mortgage can help a first time buyer.

To find out all the benefits and options for preventing foreclosure, go to Foreclosure Prevention Team Ready to Help in Hudson County contact Eddie Perez, Broker-REALTOR®, CDPE or Anoir Redouane, REALTOR®, CDPE. Their market includes Hoboken, Jersey City, Weehawken and Union City. They can be reached at 201-344-2886 or at eddie@InvestHoboken.com Prevent Foreclosure.

Obama’s Mortgage Rescue Plan

March 27, 2009

President Barack Obama’s Homeowner Affordability Rescueand Stability Plan, is an effort to overcome what Obama called “a crisis unlike we’ve ever known.”

The question that has come to mind for many of us is, who can get help through this program?

Some people with high payments will be able to have their loans modified to get lower interest rates.  If your monthly payment on your primary home is greater than 31 percent of your monthly gross income, there’s a good chance you could qualify. It also depends on whether your lender participates in the program.

Others, with mortgages owned or guaranteed by Fannie Mae or Freddie Mac, could get help to refinance, meaning they would get a new loan with better terms.

If a lender agrees to bring a mortgage payment down to 38 percent of the borrower’s income, the government and lender will split the cost of going down an additional 7 percentage points, down to 31 percent of the individual’s income.

Only primary residences are eligible for this program. However, a duplex with 2, 3, or 4 units is eligible if you live in one of the units.

With a loan modification it’s more likely that the lender foreclosure-rescue-bill1would lower your interest rate and not reduce the amount owed. However, the government will provide incentive payments to borrowers that make timely payments on modified loans. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of the period.

At this time, more than 300 banks have received TARP funds and they are required to participate in the loan modification program. Any other lenders would participate in the program voluntarily. The government is offering substantial incentives to lenders to do so, and expects that most major lenders will participate.

Most mortgage lenders will send letters to potentially eligible homeowners sometime after March 4, when the program started.

Some $75 billion is going toward the loan modification program. Of that, $50 billion will come from the $700 billion bailout fund created last year, known as the Troubled Asset Relief Program, or TARP. The remaining $25 million will come from Fannie Mae and Freddie Mac.

People whose payments were less than 31 percent of their income would not qualify to have their loans modified. But they might qualify for refinancing to take advantage of low interest rates.

To meet the eligibility requirements, homeowners need to be current on their payments and have mortgages owned or guaranteed by Fannie Mae or Freddie Mac. Your income and history of mortgage payments will be considered.

For more information regarding the President’s stimulus plan go to How Obama’s Stimulus Plan Will Help Homeowners.

If you are in fear of foreclosure click on the following link to find helpful information Are You at Risk of Foreclosure?

To find out all the benefits and options for preventing foreclosure, go to Foreclosure  Prevention Team Ready to Help in Hudson County contact Eddie Perez, Broker-REALTOR®, CDPE or Anoir Redouane, REALTOR®, CDPE.  Their market includes Hoboken, Jersey City, Weehawken and Union City.  They can be reached at 201-344-2886 or at eddie@InvestHoboken.com

 

WHAT IS A CERTIFIED DISTRESSED PROPERTY EXPERT (CDPE)?

February 13, 2009

A property can become distressed for many reasons but the most commoncdpelogo_color_name_300dpi3 reason is a foreclosure. Any situation that has caused a property owner to have difficulty making mortgage payments is said to be in a distressed state; basically, any property which has foreclosure looming can be defined as a distressed property.

A Certified Distressed Property Expert (CDPE) is not only a designation earned by a licensed Real Estate Agent and REALTOR but it is also an acronym that says the person displaying it has gone through extensive training to successfully mitigate a foreclosure. This can be done by negotiating mortgage terms, helping to negotiate a refinance, or the most likely outcome, helping to sell the property.

If the value of the property drops below what one could sell the property for and satisfy debts, then the property is said to be short and any sale would be considered a “short sale”. Short sales and foreclosures have become very common lately. Negotiation of a short sale is where a  CDPE can be very helpful.

These transactions are very time consuming and tedious. A large amount of work goes into drafting market reports and gathering all the information to convince the bank to accept a sales amount that will net them less. Some of these sales can take anywhere from 6 to 12 months to close.  It is very important for buyers and sellers of distressed property to use a CDPE agent who can get these transactions to the closing table the right way

Less that 1 % of REALTORS nationwide have the training and knowledge to successfully negotiate a short sale. If you have a distressed property you can’t take a chance and give your home sale to someone who doesn’t have the tools to get things done.  I am one of the few professional agents that has dedicated my time, effort, and finances to educate myself in this sector of the market.

If you find yourself falling behind on your payments, I may be able to help you.  For foreclosure advice or personal assistance finding your new Hoboken home, visit our website at Your Home for Real Estate.