News Release
NATIONAL ASSOCIATION OF REALTORS
The Voice For Real Estate®
500 New Jersey Avenue, NW
Washington DC 20001
PUBLIC AFFAIRS
For Further Information Contact:
Mary Trupo, 202/383-1007
mtrupo@realtors.org
Uniform Process for Short Sales Will Help Struggling Homeowners, Say RealtorsÒ
WASHINGTON (May 14, 2008) – Help is on the way for many homeowners who are facing foreclosure, thanks to new details under the Making Home Affordable Program announced today by the U.S. Treasury and the U.S. Department of Housing and Urban Development.
The Making Home Affordable Program is designed to help homeowners obtain modifications to their loan so they can afford to stay in their home. Where a modification is not possible, new incentives encourage the “quick private sale or voluntary transfer of property, which will save homeowners money and protect their financial future,” according to U.S. Treasury Secretary Timothy Geithner. The National Association of Realtors® expects that a uniform process for handling short sales and financial incentives will facilitate this process.
“NAR is pleased that the government is stepping in to help prevent foreclosures by streamlining the short-sale and deeds-in-lieu process,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “NAR has been calling for uniform short sales procedures and other initiatives that will help today’s homeowners in challenging economy.”
Short sales occur when a bank agrees to let homeowners who have fallen behind on their mortgage to sell their home for less than they owe on their mortgage. Visit www.treasury.gov for detailed information on the program changes.
“Many families are finding themselves with a mortgage that is higher than their current home value, and they are struggling,” said McMillan. “As Secretary Geithner noted, and as NAR has been advocating for many months, stemming the foreclosure crisis and stabilizing the housing market are critical to our economic recovery.”
“We have heard from Realtors® that the extensive delay in the short sale process had caused many buyers to go elsewhere and have left many would-be sellers with no option but foreclosure. We are all pleased that the government has stepped in to help homeowners and those wishing to buy a home,” McMillan said.
-more- #073
Uniform Process for Short Sales will Help Struggling Homeowners, say RealtorsÒ – add 1
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
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Information about NAR is available at www.realtor.org. This and other news releases are posted in the Web site’s “News Media” section in the NAR Media Center.
Friday, May 15, 2009
Wednesday, May 13, 2009
Make your home affordable
This is full of valuable information. Find out if you are eligible to make your home more affordable.
BE CAUTIOUS of sites or Foreclosure programs that ask you to give them money or sign your deed over to them for a certain amount of time.
http://www.makinghomeaffordable.gov/
BE CAUTIOUS of sites or Foreclosure programs that ask you to give them money or sign your deed over to them for a certain amount of time.
http://www.makinghomeaffordable.gov/
Freddie Mac Video - Making Home Affordable and Avoiding Foreclosure Rescue Scams
Here is a VERY VALUABLE video!!
Look on FreddieMac website to see if you have a FreedieMac Mortgage.
Freddie Mac Video - Making Home Affordable and Avoiding Foreclosure Rescue Scams
Look on FreddieMac website to see if you have a FreedieMac Mortgage.
Freddie Mac Video - Making Home Affordable and Avoiding Foreclosure Rescue Scams
Friday, May 1, 2009
Government Expansion of Foreclosure Prevention
Government Expansion of Foreclosure Prevention:
Second Liens and Hope for Homeowners Modified
The President said this past week that government is expanding its foreclosure prevention program to cover second mortgages and to direct more troubled borrowers to the Hope for Homeowners program. Much like the rest of the program recently announced however, we will withhold judgment until results start being achieved.
The president's current $75 billion program has gotten off to a slow start. Loan servicers only recently started taking applications and many delinquent borrowers have complained about not being able to qualify for the program.
The administration is now seeking to address some of the concerns by changing the original modification plan, which calls for adjusting eligible borrowers' loans so monthly payments are no more than 31% of pre-tax income.
The main issue with the current program for many borrowers is that up to half of at-risk borrowers have second liens, according to recent government reports.
Under the administration's new program, the interest rate on second mortgages will be reduced to 1% on loans where payments cover interest and principal and to 2% for interest-only loans. The government will subsidize the rate reduction, with the money going to the mortgage investor.
The servicers will be paid $500 for each modification and an additional $250 annually for three years if the borrower stays current. Borrowers can receive up to $250 per year for five years to pay down their first mortgage.
In addition, investors can also receive a payment in exchange for extinguishing the second lien. They would receive 3 cents on the dollar for loans more than 180 days delinquent and between 4 cents and 12 cents for less delinquent loans, depending on the borrowers' debt levels.
Servicers who join the new program must modify second loans when a borrower's first mortgage is adjusted. It will likely take a month to implement is the information being presented.
In addition, the administration said it is now requiring servicers to offer troubled borrowers access to Hope for Homeowners as a modification option if they qualify.
Expanding Hope for Homeowners would address one of the major holes in the original Obama foreclosure prevention plan. It helps homeowners whose homes are now worth far less than their mortgages.
Servicers would now have to reduce the principal to 93% of the home's value. The change would also reduce the program's high fees, which turned off many troubled borrowers.
As an incentive to participate, servicers will be paid $2,500 for each refinancing, while lenders who originate the new loans will receive up to $1,000 a year for three years, as long as the loan remains current.
These plans are all steps in the right direction to try and help additional borrowers who have not had results with the current initiatives. How effective they will be is still yet to be determined.
Second Liens and Hope for Homeowners Modified
The President said this past week that government is expanding its foreclosure prevention program to cover second mortgages and to direct more troubled borrowers to the Hope for Homeowners program. Much like the rest of the program recently announced however, we will withhold judgment until results start being achieved.
The president's current $75 billion program has gotten off to a slow start. Loan servicers only recently started taking applications and many delinquent borrowers have complained about not being able to qualify for the program.
The administration is now seeking to address some of the concerns by changing the original modification plan, which calls for adjusting eligible borrowers' loans so monthly payments are no more than 31% of pre-tax income.
The main issue with the current program for many borrowers is that up to half of at-risk borrowers have second liens, according to recent government reports.
Under the administration's new program, the interest rate on second mortgages will be reduced to 1% on loans where payments cover interest and principal and to 2% for interest-only loans. The government will subsidize the rate reduction, with the money going to the mortgage investor.
The servicers will be paid $500 for each modification and an additional $250 annually for three years if the borrower stays current. Borrowers can receive up to $250 per year for five years to pay down their first mortgage.
In addition, investors can also receive a payment in exchange for extinguishing the second lien. They would receive 3 cents on the dollar for loans more than 180 days delinquent and between 4 cents and 12 cents for less delinquent loans, depending on the borrowers' debt levels.
Servicers who join the new program must modify second loans when a borrower's first mortgage is adjusted. It will likely take a month to implement is the information being presented.
In addition, the administration said it is now requiring servicers to offer troubled borrowers access to Hope for Homeowners as a modification option if they qualify.
Expanding Hope for Homeowners would address one of the major holes in the original Obama foreclosure prevention plan. It helps homeowners whose homes are now worth far less than their mortgages.
Servicers would now have to reduce the principal to 93% of the home's value. The change would also reduce the program's high fees, which turned off many troubled borrowers.
As an incentive to participate, servicers will be paid $2,500 for each refinancing, while lenders who originate the new loans will receive up to $1,000 a year for three years, as long as the loan remains current.
These plans are all steps in the right direction to try and help additional borrowers who have not had results with the current initiatives. How effective they will be is still yet to be determined.
Second Liens and Hope for Homeowners Modified
The President said this past week that government is expanding its foreclosure prevention program to cover second mortgages and to direct more troubled borrowers to the Hope for Homeowners program. Much like the rest of the program recently announced however, we will withhold judgment until results start being achieved.
The president's current $75 billion program has gotten off to a slow start. Loan servicers only recently started taking applications and many delinquent borrowers have complained about not being able to qualify for the program.
The administration is now seeking to address some of the concerns by changing the original modification plan, which calls for adjusting eligible borrowers' loans so monthly payments are no more than 31% of pre-tax income.
The main issue with the current program for many borrowers is that up to half of at-risk borrowers have second liens, according to recent government reports.
Under the administration's new program, the interest rate on second mortgages will be reduced to 1% on loans where payments cover interest and principal and to 2% for interest-only loans. The government will subsidize the rate reduction, with the money going to the mortgage investor.
The servicers will be paid $500 for each modification and an additional $250 annually for three years if the borrower stays current. Borrowers can receive up to $250 per year for five years to pay down their first mortgage.
In addition, investors can also receive a payment in exchange for extinguishing the second lien. They would receive 3 cents on the dollar for loans more than 180 days delinquent and between 4 cents and 12 cents for less delinquent loans, depending on the borrowers' debt levels.
Servicers who join the new program must modify second loans when a borrower's first mortgage is adjusted. It will likely take a month to implement is the information being presented.
In addition, the administration said it is now requiring servicers to offer troubled borrowers access to Hope for Homeowners as a modification option if they qualify.
Expanding Hope for Homeowners would address one of the major holes in the original Obama foreclosure prevention plan. It helps homeowners whose homes are now worth far less than their mortgages.
Servicers would now have to reduce the principal to 93% of the home's value. The change would also reduce the program's high fees, which turned off many troubled borrowers.
As an incentive to participate, servicers will be paid $2,500 for each refinancing, while lenders who originate the new loans will receive up to $1,000 a year for three years, as long as the loan remains current.
These plans are all steps in the right direction to try and help additional borrowers who have not had results with the current initiatives. How effective they will be is still yet to be determined.
Second Liens and Hope for Homeowners Modified
The President said this past week that government is expanding its foreclosure prevention program to cover second mortgages and to direct more troubled borrowers to the Hope for Homeowners program. Much like the rest of the program recently announced however, we will withhold judgment until results start being achieved.
The president's current $75 billion program has gotten off to a slow start. Loan servicers only recently started taking applications and many delinquent borrowers have complained about not being able to qualify for the program.
The administration is now seeking to address some of the concerns by changing the original modification plan, which calls for adjusting eligible borrowers' loans so monthly payments are no more than 31% of pre-tax income.
The main issue with the current program for many borrowers is that up to half of at-risk borrowers have second liens, according to recent government reports.
Under the administration's new program, the interest rate on second mortgages will be reduced to 1% on loans where payments cover interest and principal and to 2% for interest-only loans. The government will subsidize the rate reduction, with the money going to the mortgage investor.
The servicers will be paid $500 for each modification and an additional $250 annually for three years if the borrower stays current. Borrowers can receive up to $250 per year for five years to pay down their first mortgage.
In addition, investors can also receive a payment in exchange for extinguishing the second lien. They would receive 3 cents on the dollar for loans more than 180 days delinquent and between 4 cents and 12 cents for less delinquent loans, depending on the borrowers' debt levels.
Servicers who join the new program must modify second loans when a borrower's first mortgage is adjusted. It will likely take a month to implement is the information being presented.
In addition, the administration said it is now requiring servicers to offer troubled borrowers access to Hope for Homeowners as a modification option if they qualify.
Expanding Hope for Homeowners would address one of the major holes in the original Obama foreclosure prevention plan. It helps homeowners whose homes are now worth far less than their mortgages.
Servicers would now have to reduce the principal to 93% of the home's value. The change would also reduce the program's high fees, which turned off many troubled borrowers.
As an incentive to participate, servicers will be paid $2,500 for each refinancing, while lenders who originate the new loans will receive up to $1,000 a year for three years, as long as the loan remains current.
These plans are all steps in the right direction to try and help additional borrowers who have not had results with the current initiatives. How effective they will be is still yet to be determined.
Wednesday, April 1, 2009
Another reason not to leave your home
I just caught wind of this article from the NY Times newspaper and thought I would share.
http://www.nytimes.com/2009/03/30/us/30walkaway.html?pagewanted=1&_r=2&ref=patrick.net
http://www.nytimes.com/2009/03/30/us/30walkaway.html?pagewanted=1&_r=2&ref=patrick.net
Thursday, March 26, 2009
Trulia Newsletter
Hey Everyone,
Here is some good information from Trulia in regards to buying or renting.
Trulia E-Newsletters
Sign up for the Trulia NewsletterGet time-saving tips and tricks to finding your dream home, check out the latest steals and deals, and get the scoop on celebrity pads every week. You can change your subscription anytime (but we hope you'll stick around).
Cool, subscribe me.
March 26, 2009 Past Newsletters
Should you rent or buy right now?
Check out this unique Chicago, IL condo $325K, 3bd/2ba/1,500 sqft
With an “iffy” economy and the recent changes in first time home buyer incentives , figuring out if you should rent or buy can be tricky. Can you afford the down payment? Or, is it cheaper to rent? Luckily, here are two awesome tools to help you make that hefty decision. First, find a home you like. Then, try the Rent vs. Buy calculator to find out how much you can save by renting or buying. Or, use the Mortgage calculator to get an idea of what your monthly payments would be. What do you have to lose?
Rent vs. Buy calculator
Mortgage calculator
If you can’t decide whether now’s the right time to rent or buy in your area, this tool’s for you. Compare the cost of owning versus renting a home to see which option may be a better fit for you.
Use our mortgage calculator to estimate total monthly payments for your future home as well as the total amount due over the life of the loan.
House of the week Want a Coke with that house?
This Hotlanta mansion definitely caught our eye with its Southern charm, especially since it was the previous pad of former Coca-Cola Company President and philanthropist Robert Woodruf. The 1930s Regency-style house boasts blood-red dining room walls that can only be characterized as flamboyant. It certainly fits the neighborhood air, the aptly-named Tuxedo Park.
How to determine your homeowner's insurance coverage sponsor
Your home may be the biggest investment you'll ever make. So if you're serious about protecting that investment, here is some important information to consider when determining the coverage amount for your home. 1. Make sure that your home is insured for at least 100% of its estimated replacement cost. 2. Understand the difference between market value and replacement cost for insurance purposes. 3. When buying a new home, be sure to obtain a replacement cost estimate. Read more about homeowner's insurance » These tips brought to you by State Farm Insurance.
Celebrity Home Sightings Get your superficial fix here.
Jay Cutler, star Quarterback for the Denver Broncos, puts his house in Parker, CO for sale
$2,000,000 4br / 7ba / 7,516 sqft
Former home of Newlyweds couple Jessica Simpson and Nick Lachey in Calabasas, CA gets listed for $3.9M
$3,995,00 5br / 6.5ba / 6,483 sqft
Seattle Mariners star Ichiro Suzuki lists his luxury home with unobstructed views of Lake Sammamish
$1,750,000 5br / 4.5ba / 4,920 sqft
Advice & Opinions Ι Get insightful, fast, FREE advice on home buying & selling
Blog of the week
You want to remodel, but how? We are hearing that a lot of people (would-be clients, if you will) are reaching a mental road block caused by lack of information. They have a home project they want to take on...maybe even need to...but all they've heard is how difficult financing is obtain these days or that construction loans just aren't available… Written by Jamie , Other/Just Looking in Bellevue, WA Read more or comment »
Question of the week
Q: I want to take advantage of the $8K tax credit; can I delay the close date by a month? Asked by Gixxersixxer, Home Buyer in FS, CA A: It never hurts to ask. Contracts are a 2 way street, and as long as the request is legal, and both parties agree, you can change just about anything. Your request seems very reasonable especially since there is nobody living in the house who would be affected... Answered by Jim Cheney , Real Estate Pro in Santa Rosa, CA Read more or reply »
Real Estate Eye Candy Trulia picks
Recent trend: Granite countertops
Why not save yourself a few bucks and consider entertaining at home. Bonus: You can show off those trendy granite counters to mom.
Baltimore, MD $314,900 2br / 2ba / 1,152 sqft Calculate mortgage
Nashville, TN $369,000 3br / 3ba / 1,731 sqft Calculate mortgage
St. Charles, MO $240,000 3br / 2ba / 1,854 sqft Calculate mortgage
Here is some good information from Trulia in regards to buying or renting.
Trulia E-Newsletters
Sign up for the Trulia NewsletterGet time-saving tips and tricks to finding your dream home, check out the latest steals and deals, and get the scoop on celebrity pads every week. You can change your subscription anytime (but we hope you'll stick around).
Cool, subscribe me.
March 26, 2009 Past Newsletters
Should you rent or buy right now?
Check out this unique Chicago, IL condo $325K, 3bd/2ba/1,500 sqft
With an “iffy” economy and the recent changes in first time home buyer incentives , figuring out if you should rent or buy can be tricky. Can you afford the down payment? Or, is it cheaper to rent? Luckily, here are two awesome tools to help you make that hefty decision. First, find a home you like. Then, try the Rent vs. Buy calculator to find out how much you can save by renting or buying. Or, use the Mortgage calculator to get an idea of what your monthly payments would be. What do you have to lose?
Rent vs. Buy calculator
Mortgage calculator
If you can’t decide whether now’s the right time to rent or buy in your area, this tool’s for you. Compare the cost of owning versus renting a home to see which option may be a better fit for you.
Use our mortgage calculator to estimate total monthly payments for your future home as well as the total amount due over the life of the loan.
House of the week Want a Coke with that house?
This Hotlanta mansion definitely caught our eye with its Southern charm, especially since it was the previous pad of former Coca-Cola Company President and philanthropist Robert Woodruf. The 1930s Regency-style house boasts blood-red dining room walls that can only be characterized as flamboyant. It certainly fits the neighborhood air, the aptly-named Tuxedo Park.
How to determine your homeowner's insurance coverage sponsor
Your home may be the biggest investment you'll ever make. So if you're serious about protecting that investment, here is some important information to consider when determining the coverage amount for your home. 1. Make sure that your home is insured for at least 100% of its estimated replacement cost. 2. Understand the difference between market value and replacement cost for insurance purposes. 3. When buying a new home, be sure to obtain a replacement cost estimate. Read more about homeowner's insurance » These tips brought to you by State Farm Insurance.
Celebrity Home Sightings Get your superficial fix here.
Jay Cutler, star Quarterback for the Denver Broncos, puts his house in Parker, CO for sale
$2,000,000 4br / 7ba / 7,516 sqft
Former home of Newlyweds couple Jessica Simpson and Nick Lachey in Calabasas, CA gets listed for $3.9M
$3,995,00 5br / 6.5ba / 6,483 sqft
Seattle Mariners star Ichiro Suzuki lists his luxury home with unobstructed views of Lake Sammamish
$1,750,000 5br / 4.5ba / 4,920 sqft
Advice & Opinions Ι Get insightful, fast, FREE advice on home buying & selling
Blog of the week
You want to remodel, but how? We are hearing that a lot of people (would-be clients, if you will) are reaching a mental road block caused by lack of information. They have a home project they want to take on...maybe even need to...but all they've heard is how difficult financing is obtain these days or that construction loans just aren't available… Written by Jamie , Other/Just Looking in Bellevue, WA Read more or comment »
Question of the week
Q: I want to take advantage of the $8K tax credit; can I delay the close date by a month? Asked by Gixxersixxer, Home Buyer in FS, CA A: It never hurts to ask. Contracts are a 2 way street, and as long as the request is legal, and both parties agree, you can change just about anything. Your request seems very reasonable especially since there is nobody living in the house who would be affected... Answered by Jim Cheney , Real Estate Pro in Santa Rosa, CA Read more or reply »
Real Estate Eye Candy Trulia picks
Recent trend: Granite countertops
Why not save yourself a few bucks and consider entertaining at home. Bonus: You can show off those trendy granite counters to mom.
Baltimore, MD $314,900 2br / 2ba / 1,152 sqft Calculate mortgage
Nashville, TN $369,000 3br / 3ba / 1,731 sqft Calculate mortgage
St. Charles, MO $240,000 3br / 2ba / 1,854 sqft Calculate mortgage
Wednesday, March 18, 2009
Is your home fading away?
In today's real estate market you are not alone if you are experiencing periods of financial instability and facing numerous hardships in trying to keep up with your mortgage payments and paying your monthly bills.
Each day can be a struggle trying to cope with the unbearable stress and heartache knowing there is a possibiity that you might lose your home to foreclosure or may have to file for bankruptcy.
Do you know that foreclosure is not the only option? Don't let his happen to you because you didn't know what they are.
An alternative to foreclosure is pursuing the option of a short sale. A short sale is the sale of your home negotiated with a bank or mortgage compnay to accept less than what is owed on the property
Did you know that banks prefer to do a short sale over a foreclosure? Banks are not in the business of owning property and do not want to foreclose on you.
In order to qualify for a short sale, you must have a demonstrable financial harrdship. You will have to prove this hardship through a signed letter that will be submitted toyour mortage company along with other documentation.
What is an Acceptable Hardship?
A hardship can be defined as a material change in the financial situation of a homeowner that is or will affect their ability to pay their mortgage.
Examples of acceptable financial hardship are:
1. Loss of Job
2. Business Failure
3. Damage to Property
4. Death of a Spouse
5. Death of family members
6. Severe Illness
7. Inheritance
8. Divorce
9. Mandatory Job Relocation
10. Medical Bills
11. Military Service
12. Payment Increase or Mortgage Adjustment
13. Insurance or Tax Increase
14. Reduced Income
15. Separation
16. Too much debt
17. Incarceration
If you are finding yourself is a situation where you need to sell, owe more than your home is worth or have been late with your mortgage payments a short sale may be an option for you.
Disclaimer: This post is not intended to be or to provide legal advice. We recommend that you speak to your attorney and your tax accountant regarding specifics and to find out if this is the best option for you in your situation.
************************************************************************************************
Compliments of Donna Bigda
Each day can be a struggle trying to cope with the unbearable stress and heartache knowing there is a possibiity that you might lose your home to foreclosure or may have to file for bankruptcy.
Do you know that foreclosure is not the only option? Don't let his happen to you because you didn't know what they are.
An alternative to foreclosure is pursuing the option of a short sale. A short sale is the sale of your home negotiated with a bank or mortgage compnay to accept less than what is owed on the property
Did you know that banks prefer to do a short sale over a foreclosure? Banks are not in the business of owning property and do not want to foreclose on you.
In order to qualify for a short sale, you must have a demonstrable financial harrdship. You will have to prove this hardship through a signed letter that will be submitted toyour mortage company along with other documentation.
What is an Acceptable Hardship?
A hardship can be defined as a material change in the financial situation of a homeowner that is or will affect their ability to pay their mortgage.
Examples of acceptable financial hardship are:
1. Loss of Job
2. Business Failure
3. Damage to Property
4. Death of a Spouse
5. Death of family members
6. Severe Illness
7. Inheritance
8. Divorce
9. Mandatory Job Relocation
10. Medical Bills
11. Military Service
12. Payment Increase or Mortgage Adjustment
13. Insurance or Tax Increase
14. Reduced Income
15. Separation
16. Too much debt
17. Incarceration
If you are finding yourself is a situation where you need to sell, owe more than your home is worth or have been late with your mortgage payments a short sale may be an option for you.
Disclaimer: This post is not intended to be or to provide legal advice. We recommend that you speak to your attorney and your tax accountant regarding specifics and to find out if this is the best option for you in your situation.
************************************************************************************************
Compliments of Donna Bigda
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