Save Your Home When You Understand Your Foreclosure Alternatives

If you are one of the many homeowners facing tough choices in today’s economy, we understand. We know that looking for assistance with your mortgage and deciding where to go for help can be confusing and frustrating. And we’re here to help.

Whether your financial hardship or current situation is temporary or more permanent, options are available. Even if you have decided you want relief from the responsibility and the burden of your mortgage payments, now’s the time to take action before it’s too late. The last thing you want is to have a foreclosure on your credit report.

To help, Fannie Mae has created KnowYourOptions.com — so homeowners can understand their options. That website will also help you learn more about how you can avoid foreclosure and so you can have a more informed discussion with your mortgage company or housing counselor about your options.

Know Your Options To Avoid Foreclosure.

There are many options for homeowners who are struggling with their mortgage payments. Below is just an overview of some options that may be available to you:

Refinance
A new loan — with new terms, interest rates and monthly payments — that completely replaces your current mortgage. Even if your home value has decreased, you may be able to refinance your loan as part of the government’s Home Affordable Refinance Program (HARP). Refinance benefits:

* Make your payment more affordable by lowering your interest rate or adjusting the terms of your loan
* No negative impact to credit score
* Stay in your home and avoid foreclosure

Repayment Plan
An agreement between you and your mortgage company that lets you pay the past due amount on your mortgage payments over a specified time period in order to bring your mortgage up to date. Repayment plan benefits:

* Catch up on your past due payments over an extended period of time
* Less damaging to your credit score than a foreclosure
* Stay in your home and avoid foreclosure

Forbearance
An offer by your mortgage company to temporarily suspend or reduce your monthly mortgage payments for a specified period of time. Forbearance benefits:

* Have time to improve your financial situation and get back on your feet
* Less damaging to your credit score than a foreclosure
* Stay in your home and avoid foreclosure

Modification
An agreement between you and your mortgage company to change the original terms of your mortgage — such as payment amount, length of loan, etc. You may be eligible for the government’s Home Affordable Modification Program (HAMP) created to help struggling homeowners. Modification benefits:

* May reduce your monthly mortgage payments to a more affordable amount
* Less damaging to your credit score than a foreclosure
* Stay in your home and avoid foreclosure

Short Sale
A short sale is the sale of a home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off your mortgage balance with the proceeds. Short sale benefits:

* Eliminate or reduce your mortgage debt
* Assistance for relocation may be available
* May be able to recover your credit score — and get another mortgage — faster than if you went through foreclosure

Deed-for-Lease™
A new program that allows you to temporarily lease your home. You first transfer the ownership of your home to the mortgage company (called a Deed-in-Lieu of Foreclosure, see below) in exchange for release from your mortgage loan and payments. You can then rent the property back — at an affordable rate — and remain in the home as a tenant. Deed-for-Lease benefits:

* Stay in your home and neighborhood — no need to move or relocate
* May be able to recover your credit score faster than if you went through foreclosure
* Assistance for relocation may be available at the end of your lease
* Avoid foreclosure

Deed-in-Lieu of Foreclosure
With a Deed-in-Lieu of Foreclosure (DIL), transfer the ownership of your property to your mortgage company in exchange for a release from your mortgage loan and payments. DIL benefits:

* Eliminate or reduce your mortgage debt
* May be eligible for relocation assistance
* May be able to recover your credit score — and get another mortgage — faster than if you went through foreclosure

To discuss your options with the Certified Professionals at The HomeFetchers Team, click here: Get Help Now

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24-Hour Recorded Home Helpline: 877-610-1717
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Come And Get It…Government Awards $1 Billion In New Housing Aid

U.S. Housing and Urban Development Secretary Shaun Donovan awarded an additional $1 billion in funding to all states along with a number of counties and local communities struggling to reverse the effects of the foreclosure crisis. The grants announced today represent a third round of funding through HUD’s Neighborhood Stabilization Program (NSP) and will provide targeted emergency assistance to state and local governments to acquire, redevelop or demolish foreclosed properties.

“These grants will support local efforts to reverse the effects these foreclosed properties have on their surrounding neighborhoods,” said Donovan. “We want to make certain that we target these funds to those places with especially high foreclosure activity so we can help turn the tide in our battle against abandonment and blight. As a direct result of the leadership provided by Senator Chris Dodd and Congressman Barney Frank, who played key roles in winning approval for these funds, we will be able to make investments that will reduce blight, bolster neighboring home values, create jobs and produce affordable housing.”

The funding announced today is provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act. To date, there have been two other rounds of NSP funding: the Housing and Economic Recovery Act of 2008 (HERA) provided $3.92 billion and the American Recovery and Reinvestment Act of 2009 (Recovery Act) appropriated an additional $2 billion. Like those earlier rounds of NSP grants, these targeted funds will be used to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values. Today, 95 cents of every dollar from the first round of NSP funding is obligated—and is in use by communities, buying up and renovating homes, and creating jobs.

State and local governments can use their neighborhood stabilization grants to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer downpayment and closing cost assistance to low- to moderate-income home buyers (household incomes do not exceed 120% of area median income). In addition, these grantees can create “land banks” to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property. HUD will issue an NSP3 guidance notice in the next few weeks to assist grantees in designing their programs and applying for funds.

NSP 3 will take full advantage of the historic First Look partnership Secretary Donovan announced with the National Community Stabilization Trust last week. First Look gives NSP grantees an exclusive 12-14 day window to evaluate and bid on properties before others can do so. By giving every NSP grantee the first crack at buying foreclosed and abandoned properties in these targeted neighborhoods, First Look will maximize the impact of NSP dollars in the hardest-hit neighborhoods—making it more likely the properties that communities want to buy are strategically chosen and cutting in half the traditional 75-to-85 day process it takes to re-sell foreclosed properties .

NSP also seeks to prevent future foreclosures by requiring housing counseling for families receiving home buyer assistance. HUD seeks to protect future home buyers by requiring states and local grantees to ensure that new home buyers under NSP receive homeownership counseling and obtain a mortgage loan from a lender who agrees to comply with sound lending practices.

In determining the allocations announced today, HUD, as it did with NSP1, followed key indicators for the distribution formula outlined by Congress. HUD is using the latest data to implement the Congressional formula. The formula weighs several factors to match funding to need in the 20% most distressed neighborhoods as determined based on the number and percentage of home foreclosures, the number and percentage of homes financed by a subprime mortgage related loan, and the number and percentage of homes in delinquency. To estimate the level of need down to the neighborhood level, HUD uses a model that takes into account causes of foreclosures and delinquencies, which include housing price declines from peak levels, and increases in unemployment, and rate of high cost and highly leveraged loans. HUD also considers vacancy problems in neighborhoods with severe foreclosure related problems.

In addition to a third round of NSP funding, the Dodd-Frank Wall Street Reform and Consumer Protection Act creates a $1 billion Emergency Homeowners Loan Program to be administered by HUD. This loan program will provide up to 24 months in mortgage assistance to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition. HUD will announce additional details, including the targeted areas and other program specifics when the program is officially launched in the coming weeks.

[Source: hud.gov]

Stay tuned to http://HomeFetchers.com for more housing updates…

or call the 24-Hr Home Hotline at: 877-610-1717

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Start Home Shopping: New Home Buyer Tax Credit On The Way

It was bound to happen. A bit more help for the real estate market…before it falls totally on its face. You can expect another home buyers tax credit to come out in another 30-60 days, according to a Wall Street Journal Article discussing the Administrations new plans – including a new Home Buyers Tax Credit version 3.0, if you will.

“The Obama administration plans to set up an emergency loan program for the unemployed and a government mortgage refinancing effort in the next few weeks to help homeowners after home sales dropped in July, Housing and Urban Development Secretary Shaun Donovan said. [Call us if you have questions about the HAUP program for the unemployed homeowners in San Diego: 877-610-1717]

“The July numbers were worse than we expected, worse than the general market expected, and we are concerned,” Donovan said on CNN’s “State of the Union” program yesterday. “That’s why we are taking additional steps to move forward.”

The administration will begin a Federal Housing Authority refinancing effort to help borrowers who are struggling to pay their mortgages, and will start an emergency homeowners’ loan program for unemployed borrowers so they can stay in their homes, Donovan said.

“We’re going to continue to make sure folks have access to home ownership,” he said.

Sales of U.S. new homes unexpectedly dropped in July to the lowest level on record, signaling that even with cheaper prices and reduced borrowing costs the housing market is retreating. Purchases fell 12 percent from June to an annual pace of 276,000, the weakest since the data began in 1963.

Sales of existing houses plunged by a record 27 percent in July as the effects of a government tax credit waned, showing a lack of jobs threatens to undermine the U.S. economic recovery.”

Yes, this news does spark the debate again…should we continue to prop up the housing market or let it finally settle in to its natural bottom. Both sides of the argument have merit. The real question is: would you take advantage of the tax credit this time?

Details of this third version of the home buyer tax credit are yet to be announced.  Some other developments which Obama mentioned in a recent conference, and echoed by Real Estate Insider News include:

1) Radical re-fi. Expect there to be some sort of radical refinance program for upside down borrowers. These will not be a loan mod.

2) More programs like the Bank of America Cooperative Short Sale Program- HPO (also called the High Performance Out Reach Short Sale). Goal: reduce foreclosures..for real.

3) More ‘flexible’ loan standards. (I wonder if we didn’t learn our lesson last time on these flexible loan standards and the mess it created.)

It’s all about to get very interesting in the housing market.

Check back on our VestorLink blog for all the latest updates as they happen
Or…
Call our 24-hour Recorded Home Hotline for the latest news: 877-610-1717.

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