A new HAMP (Home Affordable Modification Program) is designed to help home owners who are struggling to pay their mortgages and whose homes are valued lower than the mortgage balance.
The ins and outs of the program are explained by real estate expert Ilyce Glink on the
Equifax Personal Finance Blog. In summary, the rule-laden program divides a qualifying borrower’s mortgage into two parts. The first loan would be for the full current value of the property. The second carries no interest and is forgiven over a three-year period.
Many homeowners are learning they don’t qualify under the new rules, so some banks are experimenting with their own programs to try to help those who can’t be helped through the government program. FHA, Fannie Mae and Freddie Mac are announcing their own loan modification programs later in the year, too, so their borrowers don’t qualify now.
Generally speaking, homeowners who can participate owe more than 115 percent of the current value of their home, they are in danger of default or are already there, and their house payment is more than 31 percent of their income. Of course, there are new forms to file, including IRS forms and recent pay stubs to provide proof of income.
Another Glink post in the
Equifax Personal Finance blog describes a HAMP program for the unemployed. Glink promises to continue posting updates to rules and reporting on new programs that become available. She also invites comments and questions about loan programs.
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Brian and Jennifer Vanderhoff North Fulton County REALTORS Vanderhoff Real Estate (770) 331-1206 ---
Milton, GA Real Estate, Condos, Homes for Sale North Fulton County, GA Real Estate, Condos, Homes for Sale Forsyth, GA Real Estate, Condos, Homes for Sale ---
Labels: HAMP, loan modifications
# posted by
Brian Vanderhoff @ 9:59 AM
Top 10 Questions to Talk Over with Your Attorney
When a homeowner finds themselves in a situation that might result best in a short sale, it’s important for them to understand their options as a homeowner when their property is in or heading toward default. They should be asking:
1. What is a better or more likely outcome for me and why?
- A short sale or a repayment plan?
- A short sale or a forbearance plan?
- A short sale or a loan modification?
- In the case of an FHA loan, a short sale or a partial claim?
- A short sale or a short sale/assumption agreement?
- A short sale or a deed-in-lieu of foreclosure?
- A short sale or a bankruptcy?
2. How do I know if my property and I may be considered for a short sale?
3. How would I initiate the short sale process?
4. Which process has a more adverse effect on my credit rating: short sale, foreclosure, bankruptcy, or deed-in-lieu of foreclosure?
5. What types of hardships would a lender generally consider favorable toward my appeal for short sale consideration?
6. On average, how long does a short sale process take?
7. What are the tax implications of a short sale?
8. If a lender agrees to the short sale option on my property, can the bank still proceed with a foreclosure?
9. Is there a real estate commission paid in a short sale? If so, who pays it?
10. When is a bankruptcy preferable to a short sale or to a foreclosure?
Labels: deed in lieu of foreclosure, forbearance plan, Georgia, loan modifications, repayment plan, short sales, what homewoners need to ask
# posted by
Brian Vanderhoff @ 8:38 PM
In yet another effort to prevent more foreclosures, Fannie Mae (FNM: 0.67, -0.05, -6.95%), Freddie Mac (FRE: 0.83, -0.05, -5.69%) in conjunction with U.S. government officials, are speeding up the modification of home loans held by financial companies.
Sources told FOX Business Network that Fannie Mae, Freddie Mac and U.S. government officials will announce later Tuesday that they will hasten efforts to modify hundreds of thousands of loans that are past due. The goal is to bring the ratio of household debt to income for the borrowers down to 38%. U.S. government officials also plan to encourage large banks that hold loans to take similar steps.
The program will be an extension of HOPE NOW alliance, which was announced last year and is designed to prevent foreclosures by reworking the terms of mortgages.
The Wall Street Journal reported the announcement will come at a 2:00 p.m. press conference at the Federal Housing Finance Agency.
Financial industry sources told FOX Business Network that the White House rejected the FDIC’s proposal to prevent foreclosures for up to 3 million home owners. That more ambitious proposal would have provided some type of loan guaranteed for hundreds of billions of restructured mortgages.
Labels: fannie mae, federal housing agency, Feds, freddie mac, Georgia, hope now alliance, loan modifications, us government
# posted by
Brian Vanderhoff @ 2:01 PM
