Tuesday, November 8, 2011

Help for nationwide homeowners



The Federal Reserve Board on Nov. 1, 2011 announced that borrowers who believe they were financially harmed during the mortgage foreclosure process by four institutions in 2009 and 2010 can now request an independent review and potentially receive compensation.

Four large mortgage servicers supervised by the Board--GMAC Mortgage, HSBC Finance Corporation, SunTrust Mortgage, and EMC Mortgage Corporation--are required to conduct this program as part of their compliance with enforcement actions issued by the Board in April 2011. Under these actions, servicers are required to compensate borrowers for financial injury resulting from deficiencies in their foreclosure processes. A number of servicers supervised by the Office of the Comptroller of the Currency must also conduct the program.

Borrowers are eligible for a review if their primary residence was in the foreclosure process in 2009 or 2010, whether or not the foreclosure was completed. The review is intended to determine if those borrowers suffered financial harm directly resulting from errors, misrepresentations, or other deficiencies.

To apply for a review, individuals may call 888-952-9105, Monday through Friday from 8 a.m. to 10 p.m. (ET), and Saturday from 8 a.m. to 5 p.m. (ET). Individuals can get more information about the review through a website set up by the servicers, www.IndependentForeclosureReview.com.

Requests for review by the servicers' independent consultants must be received by April 30, 2012. There are no costs associated with being included in the review.

Click here to read the entire press release from the Federal Reserve

Friday, November 4, 2011

Home Affordable Refinance Program (HARP Mortgage)

The Home Affordable Refinance Program (HARP) has been extended until December 31, 2013 and allows homeowners to refinance into low mortgage interest rates even if the property has decreased in value.

Established in 2009, for Fannie Mae and Freddie Mac, the Home Affordable Refinance Program provides an option for homeowners to refinance “Under Water Mortgages”. A HARP Refinance addresses situations where the homeowner’s property value has fallen causing them to no longer to qualify under traditional underwriting criteria. Homeowners with a loan owned by Freddie Mac or Fannie Mae have the opportunity to refinance with any participating lender as long as the resulting loan is less than 125% of the current property’s value.

The following criteria must be met to qualify for the Home Affordable Refinance Program:

•You must live in the home being refinanced.
•A HARP refinance only applies to Fannie Mae or Freddie Mac mortgages.
•The homeowner must be able to afford the new lower payment.
•The current mortgage must be up to date with no late payments in the past twelve months.
•Payments on the new loan must be more affordable or more stable than on the existing loan.
•The maximum Loan to Value (LTV) cap has been removed on home owners looking to refinance in to a fixed rate mortgage.
•However for homeowners looking to refinance in to an adjustable rate mortgage the maximum LTV is set at 105%.
The popularity of the HARP mortgage program has steadily grown since 2009. The three months ending in February 2011 saw record volume of 145,000 new HARP loans.

A participating lender can determine if your loan is owned by Fannie Mae or Freddie Mac and can further evaluate your eligibility. To contact one, fill out the convenient 4 step form to the rightAnnounced by the President, October 24, 2011, the Home Affordable Refinance Program has been updated allowing more homeowner’s to take advantage of the program.

The New HARP Mortgage Program Guidelines have several benefits for home owners:

•The program has been extended until December 31, 2013.•The maximum Loan to Value (LTV) cap has been removed on home owners looking to refinance in to a fixed rate mortgage.
•However for homeowners looking to refinance in to an adjustable rate mortgage the maximum LTV is set at 105%.
•The appraisal process has been streamlined; in cases where an Automated value can be determined an appraisal would not be required.
Announced by the President, October 24, 2011, the Home Affordable Refinance Program has been updated allowing more homeowner’s to take advantage of the program.

Announced by the President, October 24, 2011, the Home Affordable Refinance Program has been updated allowing more homeowner’s to take advantage of the program.

•The program has been extended until December 31, 2013.•The maximum Loan to Value (LTV) cap has been removed on home owners looking to refinance in to a fixed rate mortgage.
•However for homeowners looking to refinance in to an adjustable rate mortgage the maximum LTV is set at 105%.
•The appraisal process has been streamlined; in cases where an Automated value can be determined an appraisal would not be required.

Thursday, November 3, 2011

Half of Florida homeowners in mortgage default over than 24 motnhs

More than half of Florida homeowners in foreclosure have not made a mortgage payment in two years or more. That’s higher than the national average and one indication of why banks are paying borrowers up to $20,000 to process a short sale instead.

56 percent of Florida’s mortgages in foreclosure are 24 months or more behind in payments, compared with 39 percent nationwide.

About 84 percent of Florida foreclosures are more than 18 months in arrears.

In January 2010, just 19 percent of Florida’s foreclosures were 24 months or more delinquent.

The longer delinquency rates are more evidence of a foreclosure bottleneck that could hinder a housing recovery.

Florida’s courts are mired in an estimated 350,000 foreclosures. Cases continue to be delayed as lenders and bank lawyers sort through last fall’s robo-signing scandal.

The lengthy delays could be a boon for some struggling borrowers as banks look for alternatives to languishing in foreclosure court, said Jack McCabe, chief executive of McCabe Research & Consulting in Deerfield Beach.

Last month, Bank of America quietly began a Florida-only campaign that gives homeowners up to $20,000 for a short sale rather than letting their homes linger.

Wells Fargo and J.P. Morgan Chase have similar short-sale programs, sometimes called “cash for keys.” McCabe said a woman he knows was told by Chase it would give her $35,000 for a short sale after she was only 60 days behind on payments.

Banks are finally starting to see that foreclosures are a very long, dragged-out process and it’s to their advantage to do a short sale They don’t want to incur the expense of a vacant home. They’re cutting their losses.

Thursday, October 27, 2011

Alternatives to a Short Sale transaction


Although you’ll be transitioning out of your house, that does not necessarily mean going through foreclosure. Other solutions are available that may help you avoid eviction from—and the sale or auction of—the house that can occur during foreclosure.
There are some alternative options to a Short Sale which may help you to avoid a deficiency judgement against you and a bad record affecting your FICO credit score.

A- Short Sale
In a short sale, you sell your home and settle your mortgage debt for less than the amount you owe.

Generally takes less time to complete than a foreclosure, so your reported delinquency could be shorter
Credit may improve faster
You may be eligible for money to assist in relocation or Cash for Keys program ( up to 3000 dollars after vacating the house and leaving everything in good condition)

B- Deed in Lieu
If you are unable to sell your home in a short sale, there's another option.
Deed in Lieu of Foreclosure
With a deed in lieu of foreclosure, you give your property's deed to the bank instead of going through foreclosure. It's often an easier process than a foreclosure, but it will still have a negative impact on your credit.

3- HAMP Modification program.

A loan modification program introduced in 2009 to promote stability in the housing market. The Home Affordable Modification Program (HAMP) was aimed at helping homeowners who were devoting more than 31% their of gross income toward mortgage payments. Eligible homeowners can receive adjustments to the mortgage principal, interest rate or payments in order to get the percentage of income going to payments below 31%.

If the HAMP program does not get approved or you do not qualify then a Short Sale is the most appropiate alternative for you.

If you need more information please contact me

Maria Borci P.A, ABR, TRC | Realtor Homes 4 You LLC.
8300 NW 53rd Street . Suite 350
Miami Fl 33166
Mobile 305-798-0706
mariaborci@gmail.com
www.mariaborci.com
www.DoralBlog.com


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