Archive for the ‘Mortgages and Loans’ Category
Obama Helps Homeowners and Veterans. Congress Can’t Stop Him.
President Obama just announced a plan to help US families. And, miraculously, he doesn’t need the approval of Congress to help us.
- Obama promised relief to homeowners who are trapped in high rate loans by banks. If a homeowner is current on their current high interest loan payment, they can not be turned down for a lower interest rate loan that reduces their monthly payment.
- Obama will cut closing costs for loan refinancing on FHA loans to make refinancing affordable. The average borrower will save at least $1000 a year in fee’s and charges, in addition to saving about half of the closing costs on the new loan.
- Obama waives appraisal value as a criteria for refinancing a high rate loan. In other words, your bank can no longer use an appraisal against you…no matter how much you owe on your current loan.
- Obama promises to compensate all US Servicemen and Veterans who were foreclosed upon during their tour of duty. All Veterans who attempted to refinance their home to avoid foreclosure, and were turned away by their lender…are entitled to full compensation for all penalites, fee’s and losses.
We applaude this action and feel that it is long overdue. This is exactly the type of change that Americans, and the housing market, need to avoid further personal and financial losses. There is no legimate reason for a bank, who received taxpayer handouts, to turn down a borrower who wants to benefit from low Fed bank rates. If a borrower is able to afford a $1500 house payments at a 10% interest rate, then why would a lender turn them down for a loan payment of a $1000 per month at 4.5%? The only answer is a unfortunately a common one…GREED. Banks are closing ranks to protect their 10% rate of return from dropping to 4.5%, even though the Fed’s (ie:taxpayers) are giving them the money for nothing.
Thank you for visiting Why6Percent.com. If you are in a position to refinance a high rate loan and save your home, please do so TODAY. If you have been turned down for a refinanced loan…please reapply today. Help is Here!!
How to Get a Home Loan After Short Sale
Short sales are not uncommon in today’s real estate market. Currently, they make up more than 10 percent of home sales and that number is rising.
If you have been forced to sell your previous home short, there is a way to get another mortgage. Banks are starting to lend money to people who have worked hard to scrub up their tarnished credit history and other financing options are available.
- If you kept your mortgage paid until the closing of your short sale…you may qualify for an FHA loan right now. If you were in loan default, you will have to wait 3 years to apply…however, if you had extenuating circumstances that led to your default, the 3 year waiting period may be waived.
- If you qualify for a VA loan (veterans) you can apply for a loan within 2 years after a short sale.
- If you are applying for a Fannie Mae loan you will have a 2 year wait with a 20% down payment….10% if you have qualifiying extenuating circumstances. Otherwise, Fannie requires a 4 year waiting period for down payments between 10%-20%…and, a 7 year waiting period if your down payment is less than 10%.
- Freddie Mac requires a 4 year wait, or two years if you can prove extenuating circumstances.
- Banks and credit unions may give you a loan within 2 years with a 30% down payment. If you have extenuating circumstances, they may waive the waiting period entirely.
- Two other options to consider are seller financing or a lease-purchase. You may have to settle for less than your dream home since sellers who agree to these type of arrangements often have less desireable property that they haven’t been able to unload using normal methods.
Everyone deserves a second chance. If you have been forced to sell a home short, if you have worked hard to rebuild your credit and if you have steady employment, selling your home short won’t keep you from owning your own home, again very soon.
Thank you for visiting Why6Percent.com. Our network of brokers can list your property on the MLS and all the major real estate websites for one, low flat fee…and let you sell your home yourself. Save time and money, yet reach all the buyers in the marketplace. It’s a win – win!! Call us today at 1-800-381-9496 or visit our Why6Percent.com for details.
8 Signs that the Housing Market is Improving
We finally have a reason to celebrate!! There is an avalanche of positive news regarding an upturn in the real estate and housing market in 2012.
- Foreclosure activity in 2011 is down more than 50% lower in several states, including New Jersey, Maryland and Florida. Realty Trac
- The much feared “shadow inventory” of foreclosures declined dramatically in 2011. In December 2012, 2.2 million properties were in some stage of foreclosure. In September 2011, that number dropped to 1.5 million units…or a whopping 32% in nine months. Realtytrac
- Realtors in some hard hit area’s, such as Michigan and southern California, are reporting a shortage of housing inventory and a return to bidding wars in tight markets.
- Wall Street thinks the worst is over. Stocks of the nation’s five largest, publicly traded, home builders are at 52 week highs, signaling an upswing in home construction in 2012. In addition, the home builders have been snapping up deals on land and abandoned subdivisions, in anticipation of increased buyer demand. CNBC
- Home sellers, Realtors and home builders are getting help from rising rents, as Americans realize that owning a home is often less expensive than renting one. And, while future rent increases have no ceiling on how high they can go, ownership locks in housing expenses and equity is created as the loan balance decreases each month.
- Legal issues, property maintenance and other issues complicating the foreclosure process will push banks and lenders to approve more short sales in 2012, further reducing housing inventory.
- Interest rates will remain at historical lows in 2012, which allows more people to qualify for a home and cheap money buys more house for the same monthly payment.
- Overall, foreclosure activity was dropped more than 30 percent in 2011. Fewer than 2 million properties foreclosure notices were filed in 2011, down from 2.9 million property filings in 2010. Realty Trac
If you need to sell your home, things haven’t looked this favorable in years. 
Arm yourself with an MLS listing and exposure on Realtor.com and all the major search engines for real estate. Millions of home buyers search these websites, daily. If your home isn’t there, they will buy the one that is.
Thank you for visiting Why6Percent.com. We have helped thousands of home sellers and we can help you, too.
Banks Bulldoze Houses To Cut Taxes and Fee’s
Getting rid of repossesed homes is the biggest headache for US lenders. 1,679,125 homes ( 1 in every 77) are in some stage of foreclosure as of June. Lenders feel that no one will buy many of these homes and they”re trying to cut their losses. Bulldozing the problem away means the banks won’t owe property taxes to our floundering cities and it won’t have to pay for repairs, maintenance and upkeep on the property. In addition, there are some perks for giving away a house. The banks get a bunch of tax write-offs and best case… they may even get a pat on the back and some nice PR, too.
The idea of Bulldozing houses is nothing new. Although the banks are not blowing up homes for alturistic reasons…I think we can all agree that removing home inventory is good for all of us. In 2010, Warren Buffet advised that ”blow up a lot of houses” was a viable option and similar to ‘cash for clunkers’ auto program. I always thought bulldozing abandoned homes and returning the land to a raw state was a smarter solution than handing out money in the form of a homebuyer tax credit. The tax credit cost billions of dollars, put money into the hands of a few people blessed with good timing and did little to reduce inventory.
Bankers, why not take the “TNT” strategy one step further. Donate unwanted houses to local non-profits vs blowing them up? Make a call to Habitat for Humanity, for example? I can’t understand why Habitat is still building new homes, when we can’t get rid of the ones that are causing problems in our neighborhoods. Habitat needs to change their business model with the times and so do our lenders. Families, who are in dire need now, wait up to 6+ months for a new home to be built and the cost of building from scratch far exceeds the costs of rehabbing properties, in most cases.
Just my two cents….
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No First Time Buyers Hurt Housing Market
The lack of first-time buyers is hurting the housing market and their absense is hampering the recovery.
In normal markets, first time buyers make up 40%-45% of all home purchasers. Since January of 2011, purchases made by first time buyers averages only 32%
Why is this important for existing home sales?
First time buyers are crucial to the market because they buy starter homes so those owners can step up to a more expensive property. Despite low mortgage rates and deeply discounted prices, they are remaining on the sidelines…at least for now.
What may be keeping first time buyers out of the housing market?
Some experts point to a hangover from the Expired Tax Credit of 2009 and 201o, which may have lured buyers into a home sooner than later. Some point to tighter lending standards and increased down payment requirements. The best loan terms now kick in with a down payment of 20% or more, which may be very difficult for a first time homeowner.
The Silver Lining — The National Association of Realtors reported that a record 33% of all existing home sales in Febuary were to Cash Buyers. In some parts of the country, cash buyers accounted for more than half of all the existing homes sold.
Thank you for visiting Why6Percent.com. We have helped thousands of home sellers and builders market their homes and save money. We can help you, too! Visit our website for facts and details.
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Foreclosure Moratorium Erases Competition for Home Seller’s and Builder’s
While Wall Street wrings its hands and pulls its hair over the banking problems and foreclosure moratorium, home seller’s and home builder’s have a BIG reason to celebrate. Their competition dropped the ball!!!
The moratorium on foreclosures effectively removes ONE THIRD of all the homes For Sale from the market!! 33 Percent of the competition is GONE!!! For how long, we don’t know…but, we do know that this is a RARE opportunity and all property seller’s should take full advantage of it.
What can home seller’s and builder”s do to take advantage of the Bank Error?
- Realize that Time is of the Essense! The banks will work hard and fast to get their inventory back on the market. And, when they do, they will no doubt offer special incentives that individual seller’s can not compete against. The clock is ticking…….
- Price Right and Show Well! If your home is priced right against its remaining competition, and it is staged, depersonalized and shows well, Your House Will Sell.
- Marketing to the Masses is Key! The MLS sells over 90% of all the homes in the United States. If your home is not on the MLS, your chances of selling are less than 10%. If money is tight, know that you don’t have to pay 6% for an MLS listing. You can purchase an MLS listing for your Home for only $399.
Why6Percent.com believes that “a bank moratorium on foreclosure competition” is a very unique opportunity and the window is open for a short period of time, only. We are here to help you . “The clock is ticking”. Don’t let this unbelievable opportunity pass you by!!
Up to a Million Homeowners Win in Foreclosure Lottery
An estimated one million U.S. homeowners, behind in their mortgage payments, are breathing easier today after three of the country’s largest banks agreed to immediately stop new foreclosure actions until they could review sloppily-read foreclosure filing by their own staffs.
The lenders are Bank of America, JP Morgan Chase and GMAC Mortgage Co. owned by Ally Financial Inc. They are temporarily halting foreclosure actions in 23 states.
They are Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin.
For the homeowners, the action by the banks gives them a little more time to catch up on their delinquent mortgage payments.
For the residential real estate market, the action means fewer houses will be dumped in the for-sale arena, giving falling prices a chance to stabilize.
For the real estate market as a whole, the banks’ actions give the industry another black eye at a time when it is struggling to regain the public’s confidence.
(This article posted by Alex Finklestein
Thank you for visiting Why6Percent.com. We are always available to assist you with your home sale. Visit our website for an overview of available options.
South Florida Condo’s Selling Like Hotcakes…Again
The recently signed Distressed Condominium Relief Act of Florida has Wall Street and bulk investors diving into the Florida condo market.
Florida implented the act on July 1st and the result has been overwhelmingly successful, so far. Wall Street firms are lining up to compete for Florida Condo’s.
CLICK HERE TO READ THE REST OF THE ARTICLE
Why6Percent.com is thrilled for Florida homeowners, builders and developers. If you are selling a home or condo, please check out our affordable Realtor.com and local MLS listing packages. You will be glad you did!!!
Pay Less for PMI (Private Mortgage Insurance)
Unless you have a 20 percent equity position in your home, you will have to pony up for private mortgage insurance (PMI). This insurance premium typicallycosts between .5 – 1.5 percent of your loan amount, per year. ($500-$1500/year on a $100,000 loan) The actual costs depend upon how much equity you have, your credit score and whether you opt for a fixed rate loan or for one that adjusts.
2 Ways to Pay for PMI.
Buyers can negotiate with the seller to pay a single premium upfront or buyers can roll the premium into their loan. The downside of rolling it into the loan is that interest will be charged on loan for the premium. The upside is the interest paid is deductible and the buyer will pay less money out of pocket at closing.
The only way to eliminate PMI is to put 20 percent down and apply for 80 percent financing. Waiting is the only other way to get rid of the expense. PMI cancels as you pay down your loan and equity reaches 22 percent of the homes value.
Thank you for visiting Why 6 Percent. Interest Rates remain unchanged today. Good news for home sellers and buyers, alike. Learn more about our flat fee MLS and Realtor.com program for homeowners. Market your home like the pro’s and save thousands in commissions!
New Program Pays Homeowners and Banks for Short Sale
With more than 5 million households currently behind on their mortgages, the Obama adminstration is rolling out a new program to encourage lenders to accept a short sale. A short sale is one in which a property is sold for less than the outstanding mortgage owed to the lender. The administration hopes the program will prevent more foreclosures, which further depress property values and harm good neighborhoods.
The program, which takes effect April 5, 2010, pays lenders and borrowers to complete a short sale. Key points of the program are as follows.
- 1. The program compels lenders to accept a short sale offer and forgive the difference they are owed between the market value and the outstanding mortgage balance.
- 2. The lender will receive $1000 for every short sale they participate in.
- 3. The program encourages millions of borrowers to get serious about getting rid of their homes. It pays homeowners $1500 in walking away cash for finding buyer for their property and closing the sale.
- 4. The lender will utilize real estate agents to determine the present market value for a home. That value will set the minimum acceptable price. The estimated value will not be shared with the homeowner. If an offer is submitted that is equal to or higher than the estimated value, the lender MUST take it.
Pro’s and Con’s
- 1. For the investment pools which own most of the home loans, there is the hope of getting more money from a short sale than a foreclosure proceeding.
- 2. For the lender, $1000 will help offset the labor intensive short sale process.
- 3. For the borrower, their credit will suffer less damage. They have the lenders assurance that they won’t be sued down the line for their unpaid balance. And, they get $15oo to assist with their relocation.
- 4. For the community, short sales mean fewer empty houses sitting around waiting for the bank sale. It is estimated as many as half of all vacant properties are ransacked, neglected, vandalized and depress the value of neighboring homes.
- The downside is that short sales are “tailor made” for fraud. House values are inherently subjective, which providing a wide latitude of potential conflicts.
- Another problem is that bankers hate the very idea of accepting an offer short of what they are owed. By nature, they don’t want to sell anything at a discount. If they loan $200,000 …they expect to be repaid $200,000, not $150,000.
Thank you for visiting Why6Percent.com We have helped thousands of people sell their homes and save a ton of money in fee’s and commissions. We can Help You, too!!