New refinance program announced allowing underwater homeowners to refi

This month President Obama is announcing a new program to help homeowners who want to refinance their home loans to today's lower interest rates but have been unable to do so due to being underwater.

Right now in Manatee county almost half of the homes that have mortgages on them owe more than the current value.  If you are underwater in your home refinancing to get to a lower payment is simply not possible as any lender would require that the home be appraised, and the loan could not be for more than the current appraised value.

The new loan refinance program will have a limited population that it will really help, but could be a boon for those who have a high interest rate loan, and are underwater.  There are some catches to the program though.

1. You have to be current in your payments for the last 6 months, and you can only have been late on one payment in the 6 months prior
2. The home loan amount has to meet what is considering conforming loan limits.  In Sarasota and Bradenton, homes that have a loan amount below 416,000 would qualify.  If you have a jumbo mortgage, then you are out of luck.
3. how they intend to pay for the program that should cost 5 billion or more is to add a tax to to the major banks.  This will be then passed onto everyone through higher fees.  This is assuming that the program that gets through the congressional process that would need to approve this aid program.

Some really good points to the new program

1. If your home is underwater the program will allow up to 140% OVER the current market value to be appraised.
2. If you owe over 140% on your primary loan, then apparently there is a caveat that the lender would have to reduce your principle to this amount (140% of market value).  In my opinion, most homeowners would probably rather sell their home, as a short sale, then to keep a home so far underwater.
3. They are proposing a streamlined application process that my sources (wall street journal) state would only involve verifying employment.  Typically on a loan application, or refinance there is a lot of paperwork to provide, including tax returns, bank statements, etc.  An easy process to apply should really help

I think that this program is well intentioned, however it seems to me to a posturing effort that will allow President Obama to show that he is out to help distressed homeowners.  If this Refinancing program is blocked by Congress, then this could be a talking point that he will use to show how he is on the side of the people, and Congressional Republicans are against homeowners.

The biggest issue with this program is that it does not address those homeowners that are late, or behind in their mortgage.  I meet with many homeowners in Manatee and Sarasota county that are frustrated with their low home values, and feel trapped by the negative equity.  Many have had issues keeping up with the mortgage payments, and even if they are late, once in the past year, this program doesn't help them whatsoever

A recent new short sale home seller in Bradenton summed it up best.  He had bought in 2005, with an adjustable rate loan.  It was a home that was within his budget, but do to the recession, he was unable to keep up with the payments.  He had called his lender, Bank of America, to do a loan modification to lower his interest rates, but was drug through the process with no positive outcome.  He fell behind in his mortgage payments, while waiting for the help that never came. 

Bank of America suggested that he short sale his Bradenton home as an alternative to foreclosure.  So now I am able to help him sell his family's home and avoid a foreclosure.  He owes 400,000 on a home that was 550,000 in 2005.  Now that home will sell for in the 250,000 range.  

They are frustrated as they are going to have to move into a rental, and have damaged credit.  Plus losing the 150,000 in down payment for the purchase.  Meanwhile this short sale home will sell to a new homeowner who will get a much lower interest rate, and have a mortgage close to half of what he was paying.

It's hard not to get angry when you know the next owner of your home will be paying much less to purchase, and monthly payments that they could have easily afforded.

My proposal, would be to have ALL homeowners mortgage payments reset to what the current market value is today.  When the home sells in the future, the negative equity portion would be recaptured by the investor/lender.  All homes will eventually sell, so there will be an eventual gain to the lender.  This idea would keep many thousands of families in their homes, and help stabilize the market by eliminating all those that don't want to sell but are forced to give up their homes through a short sale or foreclosure.

Regards,

 

 

 

JOSEPH MURPHY, P.A.
941-780-3260 cell/text
941-739-9120 fax
joe@manateemoves.com
manateemoves.com

COLDWELL BANKER RESIDENTIAL RE
11215 SR 70 SUITE #105
Bradenton, FL 34202
E-mail: joe@manateemoves.com

Posted via email from Joe Murphy Knows Real Estate in Bradenton

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Posted via email from Joe Murphy Knows Real Estate in Bradenton

Florida Hardest Hit Fund Information

 

Florida HHF Program: Financial Assistance for Unemployed Homeowners

 

In February 2010, US Treasury (Treasury) created the “Housing Finance Agency (HFA) Innovation Fund for the Hardest-Hit Housing Markets” (HFA Hardest-Hit Fund). The funds were allocated to 18 states and the District of Columbia to assist in foreclosure prevention efforts. A total of $7.6 billion has been allotted for this fund; Florida’s total award amount is more than $1 billion.  

 

Florida Housing Finance Corporation (Florida Housing) is the administrator of the Florida Hardest-Hit Fund (HHF) program for the state, and was directed by Treasury to use a portion of the funds for a targeted unemployment/underemployment program to provide temporary financial assistance to eligible homeowners.

 

These programs are as follows:

 

•        Unemployment Mortgage Assistance Program (UMAP)—can provide up to six (6) months of mortgage payments (with a cap of $12,000) paid directly to the mortgage lender to assist unemployed/underemployed borrowers with their first mortgage until they can resume full payments on their own.

•        Mortgage Loan Reinstatement Payment (MLRP) Program—can be used to bring a delinquent mortgage current (up to $6,000) for a homeowner who has returned to work or recovered from underemployment/underemployment.

 

For additional information on the HHF program, visit www.FLHardestHitHelp.org. For information on how financial institutions can sign-up to become a servicer in their area, contact Nicole Gibson, federal loan program administrator, Florida Housing, via e-mail at nicole.gibson@floridahousing.org.

 

Posted via email from Joe Murphy Knows Real Estate in Bradenton

Obama Announces changes to HARP Loan modifications for all Fannie and Freddie Mac Loans?

This is breaking news as the Obama administration has side stepped Congress to help underwater homeowners refinance their higher interest loans at today's lower rates.  This could be a big step forward to helping underwater homeowners here in Manatee and Sarasota counties get into a more manageable payment that they can afford.

 

Some big unanswered questions.

 

1.  Will this program help people who are behind in their payments?  Or just upside down and current?

 

2.  Will this program expand to non Freddie Mac and Fannie Mae loans?  (I would hope so)

 

3.  What will be the credit requirements to obtaining a refi?

 

4.  Will principle reductions be a part of the equation?

 

 

Home Affordable Refinance Program (HARP) Changes

 Today, the Federal Housing Finance Agency announced enhancements to the Home Affordable Refinance Program (HARP), and extended the program until Dec. 31, 2013. The changes are designed to expand the number of borrowers with little or negative equity who can qualify for refinancing. It is possible you will receive calls from customers inquiring about their eligibility for the program. Wells Fargo will be working as quickly as possible to have the changes in place and available to borrowers. However, we will not be able to determine when we will be able to offer the program enhancements until we receive the specific program guidelines – expected in mid-November – and have the chance to interpret them and make the appropriate process and potential systems changes.

Here are talking points you can use if you receive inquiries:

·         The Home Affordable Refinance Program allows homeowners in good payment standing, whose loans are owned or guaranteed by Fannie Mae or Freddie Mac, to refinance and take advantage of today’s low interest rates.

·         The program is especially helpful for customers who cannot obtain a standard refinance because their property value has declined.  

·         The Federal Housing Finance Agency announced enhancements to this program today that will allow more customers to qualify.

·         Only borrowers with a loan sold to Fannie Mae or Freddie Mac before May 31, 2009 are eligible to refinance through HARP. In addition, borrowers who already have refinanced through HARP are not eligible to refinance through the program again.

·         Fannie Mae and Freddie Mac plan to send the program guidelines required to offer this program to all lenders in mid-November. When we receive them, we will work quickly to make the changes required to support the implementation, including any potential changes to our systems in order to offer the program to our customers as soon as possible.

·         It will take some time until the new HARP features will be available through Wells Fargo.

In the meantime, the current Home Affordable Refinance Program remains available for customers who qualify and borrowers who aren’t eligible for HARP may qualify for other refinancing options.

 

U.S. to overhaul mortgage-refinance program: WSJ

By Michael Kitchen

LOS ANGELES (MarketWatch) -- The Obama administration plans to announce major changes to a mortgage-refinance program that include eliminating restrictions for those whose homes have fallen significantly in value, The Wall Street Journal reported late Sunday, citing unidentified U.S. officials. The overhaul to the "under-used" program would also end required appraisals and extensive underwriting for most participants, so long as they have stayed current on their mortgage payments, the report said. President Barack Obama is slated to speak on the changes at a speech Monday, the report said.

·         Requires borrower to be current on their loan payments—no other requirements

·         Makes no difference how far underwater their home is

·         Will eliminate appraisals and extensive underwriting requirements for most borrowers

·         FHA, Fannie Mae and Freddie Mac have agreed to eliminate some fees in some circumstances

·         CoreLogic estimates 20 million homeowners could qualify—one out of four homeowners in the country

·         At a $400 per month loan payment reduction ($4,800 per year pre-tax), this potentially could put $96 billion annual in consumers pockets without increasing U.S. government or consumer debt 1 cent – consumers spending that would spur an economic recovery

·         Could potentially keep one out of four distressed properties off the market significantly reducing shadow inventory and expediting a recovery in the housing markets

·         Federal government will collect more income taxes as homeowners will have less interest deductibility

·         Since none of these existing loans had prepayment penalties, all current investors in those loans knowingly had the potential of repayment at any time

Posted via email from Joe Murphy Knows Real Estate in Bradenton

New loan modification program from Freddie Mac

There may be hope for those that have tried for a loan modification without success.  Freddie mac has announced that they will have a program for modifying delinquent borrower's mortgages for those that have tried, and failed prior modifications, and also for those that do not qualify for the HAMP program.

 

I have heard of lots of talk of loan modification programs, but I am always hopeful that the idea of permanent loan modification for troubled borrowers could become commonplace.  This new modification program is set to begin in January.  

 

To find out if you have a Freddie Mac loan to be eligible, check out their loan look up tool, here you can find out if Freddie mac owns your mortgage.

 

https://ww3.freddiemac.com/corporate/

 

 

In the hundred plus short sales that I have helped sell for customers here in Sarasota and Bradenton, I would estimate that more than half had tried, unsuccessfully, to modify their mortgage.  They typically call me when they reach a point of frustration dealing with all the paperwork that needs to be submitted, and the slow process.  Usually only to find out that they do not qualify.

 

In the Freddie Mac program the borrower must be at least 60 days past due.  The mortgages that are modified will have the interest rate set to 5% and have the term of the loan extended to 40 years.  What help make this program work is that Freddie Mac will offer cash incentives up to 1,600 dollars for each approved modification.  That's cash to the lender/investor.  Giving the lender a financial incentive to modify just make the difference.

 

One other interesting points to the program is that being 'owner occupied" is not a requirement for the program, so this can potentially help investors that own rental properties obtain a modifications as well.  usually being not a primary residence disqualifies a loan for modification,

Once the borrower is approved for the modification, they will be in a 3 month trial process, and if they can keep their payments current, the modification becomes permanent.  I have heard from many people that have had a modification and a trial payment period find out that at the end of the trial the loan modification was not approved, usually without a concrete answer as to why. 

 

Here in Sarasota and Bradenton we have almost half of all homeowners underwater owing more than their home's value.  There are over 16,000 active foreclosures on the market in just Manatee county.  That does not even take into account the properties that are delinquent, and not yet into the foreclosure pipeline.  Hopefully this new Freddie Mac Loan modification program will be able to help home owners here in Sarasota and Manatee counties avoid foreclosure, or having to short sale properties that they would rather keep. 

 

If you need help or advice about buying, selling property here in Sarasota and Bradenton please feel free to contact me.  Joe Murphy, Short sale expert for the Sarasota and Bradenton area.

 

  

JOSEPH MURPHY, P.A.
941-780-3260 cell/text
941-739-9120 fax
joe@manateemoves.com
manateemoves.com

COLDWELL BANKER RESIDENTIAL RE
11215 SR 70 East SUITE #105
Bradenton, FL 34202

Posted via email from Joe Murphy Knows Real Estate in Bradenton

Shadow Inventory of Foreclosures in the Major markets, a real EYE opener

We all hear about the "shadow inventory" issues our country is facing, these graphics are really amazing at showing all the upcoming foreclosures throughout the country.  This is a major problem, that will be with us for some time.  What do you think of these maps?

 

 

THIS IS A STARTLING SET OF PICTURES!   Note: The red dots show homes currently in foreclosure. The slide title describes the fraction of homes that received foreclosure filings in 2010 Although some of the worst hit areas in Nevada, California and Florida improved from 2009, the foreclosure rate in these areas remains high. For a way to visualize the foreclosure crisis, they borrowed a Google maps technique described by Barry Ritholtz . Keep scrolling down, Las Vegas is the big winner/loser with its number of foreclosures. 20) Boise, Idaho -- 1 in 21 homes in foreclosure (The red dots show all foreclosures in process) Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 19) Sarasota, Fla. -- 1 in 21 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 18) Lakeland, Fla. -- 1 in 21 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 17) Tampa, Fla. -- 1 in 20 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 16) Port St. Lucie, Fla. -- 1 in 19 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 15) Sacramento, Calif. -- 1 in 19 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 14) Naples, Fla. -- 1 in 18 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 13) Deltona, Fla. -- 1 in 17 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 12) Bakersfield, Calif. -- 1 in 17 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 11) Reno, Nev. -- 1 in 16 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 10) Vallejo, Calif. -- 1 in 16 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 9) Orlando -- 1 in 15 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 8) Merced, Calif. -- 1 in 14 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 7) Stockton, Calif. -- 1 in 14 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 6) Riverside, Calif. -- 1 of 14 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 5) Miami -- 1 in 14 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 4) Phoenix -- 1 in 14 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 3) Modesto, Calif. -- 1 in 14 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 2) Cape Coral, Fla. -- 1 in 12 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. 1) Las Vegas -- 1 in 9 homes in foreclosure Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. BONUS: USA -- 1 in 46 homes in foreclosure Image: Courtesy of Google Maps Note: The red dots shows homes currently in foreclosure.. The slide title describes the fraction of homes that received foreclosure filings in 2010. How 's that  " Hope & Change "  working out for ya?

 

 Provided by:

 

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Posted via email from Joe Murphy Knows Real Estate in Bradenton

A few nice high end bank owned homes hit the market.

High-end foreclosures have had a recent bump in the past few weeks.  I have a link below that will take you to a few unique and some bargain bank owned homes.  In case you are curious, or know anyone looking to move up this is a great time as these homes are now half price, or less than their respective values 5 years ago. 
 
 
There has been an increase in some higher end homes very recently coming on the market.  Some very nice homes here, in case you were interested, or knew anyone looking for a luxury bargain. 
 
 A few are unrealistic with prices, but offers are always welcome! 
 
This is a great time to be looking at this price range as there are less buyers in the market for the next few months before season begins.
 
Have a great night,
 
Joe Murphy

JOSEPH MURPHY, P.A.
941-780-3260 cell/text
941-739-9120 fax
joe@manateemoves.com
manateemoves.com
COLDWELL BANKER RESIDENTIAL RE
11215 SR 70 SUITE #105
Bradenton, FL 34202
E-mail: joe@manateemoves.com
04-Res Customer Gallery
06-Res Customer Gallery w Map

Posted via email from Joe Murphy Knows Real Estate in Bradenton