Wednesday, December 9, 2009

Need an Approval from Franklin Credit (In Jr Lien position)?

We just received an approval from Franklin Credit and after much back and forth (one year to be exact), we also received the truth as to what the REALLY are trying to attain.

When your offer with Franklin Credit is declined, Franklin Credit and its employees are instructed to tell you that they cannot give dollar amounts, you just need to resend a better offer. For the past three months, our strategy has been to "up" our offer to them, starting at the promissory note for 10K, then increasing in increments of 20, and slowly increasing the cash contribution to them. This was based on the fact that they won't disclose an acceptable amount, and the threads which I had read regarding strategy and acceptance with Franklin Credit.

However, I am assuming it was our lucky day when we got a rep on the phone who stated the following (directly from our system file notes): "(Rep) asked how much is he able to bring to the table? I informed of the promissory note of 15,000. (Rep) states regardless if promissory note is signed or not, a minimum of 10% which is 16,342.00 has to be paid. (Rep) advised to send an updated HUD with the corrected payoff amount and resend the higher offer to fax 201-839-XXXX Attention (Rep). "

We of course called back the next day to confirm the info, but were told (reprimanded would be more like it) that the rep should not have told us that because, again, they are not allowed to disclose figures.

However, on 11/30/09 we acted on the payoff of 10% and were told today that the approval letter had mailed to title (which was weird as well) yesterday. (UPDATE: I just received the letter in my email as well).

I recommend cutting to the chase and "finding" 10 percent of the balance owed and get it over with. They are not the most pleasant people to deal with either.

I also recommend dealing ONLY with the supervisor once you know that your acceptable offer is there for fast expedition (and she's much nicer to deal with). Email me if you'd like that info (sorry, REALTOR's only) (keisha.mathews@century21.com)

Because this info is so hard to come by, I only ask that you PLEASE respect her info and DO NOT bother her until you are ready to go straight to the ten percent. If you bother her with the small stuff you may make it harder on others trying to attain legitimate approvals.

Hope that helps! See ya in escrow!

Keisha M. Mathews, CDPE, REALTOR® | License# 01439130
The Short Sale LadyTM | Century 21 Landmark Network
(916) 266-4835 office - direct | (916) 405-3886 efax
DEDICATED TO PARTNERING WITH LOSS MITIGATORS TO REDUCE FORECLOSURES!

Tuesday, October 6, 2009

How long do you think the market will be classified as a Short Sale market?

Another item to consider are the empending foreclosures yet to be released into the marketplace. Chances are, due to the last financial fiasco, banks are not going to release all of these REOs at once as some are predicting. As is with investments, when large investors/stockholders pull out their holdings, they do it slowly and under the radar, undetectable so as not to disturb the marketplace. If a large investor pulled out of a company all at once, others surely would follow and chaos would ensue.

Banks are probably going to pull one from the investor playbook and "trickle" these properties back onto the market, thus extending/prolonging this current down market. With these REOs still on the market, the social mindset is that these are bargain basement properties and other properties on the market that wish to compete will have to be priced accordingly.

With, so many variables and unknowns, the answer to your question is simply, no one knows.

Monday, October 5, 2009

Do you think there's anything i can do to put a hold on the forclosure till I'm able to modify or short sale?

Usually, as long as there is a workout in progress (short sale or loan modification), your bank will postpone the foreclosure. The only concern is that they usually won't postpone until days before the foreclosure so it is important to stay on top of the scheduled date and make sure the modification negotiator is following up with the foreclosure department to ensure the foreclosure postponement request has been made and that the sale has been postponed.

Hope that helps!

Wednesday, September 30, 2009

I'm current on my mortgage. Will my lender consider a short sale? Some will if loans are not dilenquent. We can put your file together!
I'm current on my mortgage. Will my lender consider a short sale? Some will if loans are not dilenquent. We can put your file together!
How do I get started on a short sale? It's easy! Contact us at 916 266-4835 and we will get to work. No charge!

Tuesday, September 29, 2009

4B/2B! (ROSEVILLE) APPROVED SHORT SALE @ $270K MUST COE BY OCT 20TH! Patsy Rogers at 916 320-3276
Need a short sale? We can sell your home in 45 days or less! Call to see if your home qualifies
916 266-4835
Need to do a short sale? We guarantee to sell your home in 45 days or less!

Monday, September 28, 2009

To get started on a short sale
call us at 916-266-4835 Or complete our online Short Sale Consultation form www.SacramentoShortSaleLady.com
My Income problem was temporary. Do I still need to sell? Convince your company that you can now pay and the problem was beyond your control

Saturday, September 26, 2009

How will a Short Sale affect my credit? While waiting for approval you may miss your mortgage payments, and it will show on your credit.

Friday, September 25, 2009

Some lenders will accept a Short Sale file for approval on loans that are not delinquent. We will create & submit file @ no charge!
APPROVED SHORT SALE at $270K! Must COE by Oct 20. 916 320-3276 http://ping.fm/PI8Zw

Wednesday, August 26, 2009

Have You Been Helped or Hindered by Loan Mod Programs?

Well there is some promising news headed down the pipeline.

The Obama administration's Making Home Affordable loan modification program has recently amped the program in, what I believe, the right direction.

To date, the program has 230,000 "trial modifications" underway. The better news is that the Administration is taking additional steps to improve performance.

According to a recent report released just today by the Dept of the Treasury, on July 9, Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan wrote the CEOs of participating servicers calling upon them to redouble their efforts to increase staffing, improve borrower response times and streamline the application process. Senior Administration officials discussed the importance of these steps in a face-to-face meeting with servicer executives on July 28.

The Administration will develop more exacting metrics to measure the quality of borrower experience, such as average borrower wait time for inbound inquiries, completeness and accuracy of information provided applicants, and response time for completed applications.

As an additional protection for borrowers, the Administration has asked the program compliance agent, Freddie Mac, to develop a "second look" process to audit MHA modification applications that have been declined on an ongoing basis.

What does all of this mean to you? That if you failed at a modification the first time (especially if you paid someone to do it - that's a "no-no"), try it again, the second time just might be the charm (for free)!
EMC Mortgage holders, EMC mortgage is offering free loan modifications to its borrowers. Call them for details!
Dream Team 21 Gold out 2morow morn hittin' the sts of E.G. near Whitelock/Atkins w info on mod help and preforeclosure/short sale process!

Tuesday, August 18, 2009

Save the Date, SATURDAY AUGUST 29, 2009, registration at 8:30 a.m., Homes Saved by Faith presents a FREE Home Loan Modification Workshop!!! Details coming soon!!!

Monday, July 27, 2009

"DEDICATED TO PARTNERING WITH LOSS MITIGATORS TO PREVENT FORECLOSURES!"
reminding you that it is easier to recover from a short sale than a foreclosure. Contact me for a private consultation.

Saturday, July 11, 2009

Headed to wash cars and see a classic car show this morning at Calvine and Power Inn to benefit Easter Seals Superior Sacramento!!

Monday, July 6, 2009

Often the wisest man (or woman) in the room is the one who's made the most mistakes.

Monday, June 22, 2009

Treasury announces $268 Million more in Recovery Act Funds

From the Press Room of the US Dept of the Treasury

June 22, 2009
TG-180

WASHINGTON – As part of the Obama Administration's effort to create jobs and ease pressures on the housing market, the U.S. Department of the Treasury today announced $268 million in American Recovery and Reinvestment Act (Recovery Act) funding to spur the development of affordable housing units in Indiana, Missouri, Tennessee, and Washington D.C.

"Today's announcement of housing funds demonstrates how President Obama's Recovery Act is putting our nation on the path to economic stability, one community at a time," said Treasury Deputy Secretary Neal Wolin. "This initiative will help spur construction and development, create much needed jobs, and increase the availability of affordable housing for families around the country."

The labor and housing crises in this country are deeply inter-connected. Since their peak level at the beginning of 2006, housing starts have fallen 80 percent. Houses currently under construction are at a 13-year low, down more than 60 percent from the peak in the first quarter of 2006. This collapse has led to severe job losses in the residential building and specialty trades sector related to housing, with employment down by nearly one-third -- a loss of over one million jobs. Such losses not only indicate significant problems in the residential construction sector, but also suggest that the need for affordable housing has risen markedly during the recession.

In response, the Department of Housing and Urban Development and the Treasury Department have been implementing new efforts designed to help homeowners while providing important assistance to homebuilders. Specifically, Treasury has launched an innovative program that will provide more than $3 billion from the Recovery Act to put people to work building quality, affordable housing for individuals and families affected by the current crisis.

The Treasury Department will work with state housing agencies to jump start the development or renovation of qualified affordable housing for families across the country. Under this program, after meeting certain eligibility requirements, state housing agencies will receive funding to construct affordable housing developments.

Today, the Treasury Department is announcing the second round of recipients: $164 million in Indiana; $17 million in Missouri; $53 million in Tennessee; and $ 33.7 million in the District of Columbia.

The funds announced today are the second round in a series of awards based on a rolling application process. The Treasury Department anticipates making similar announcements in the coming weeks. To view the terms and conditions for the Treasury application, please click here.

For further information on local projects, please contact:

Indiana Housing and Community Development – David Kaufmann, (317) 324-0934
Missouri Housing Development Commission – Andi Benson, (816) 759-6658
Tennessee Housing Development Agency – Patricia Smith, (615) 815-2185
DC Department of Housing and Community Development –Angelita Colon Francia, (202) 442-7277

###

Wednesday, June 17, 2009

President Obama to Announce Comprehensive Plan for Regulatory Reform

President Obama to Announce Comprehensive Plan for Regulatory Reform


To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®.
June 17, 2009
TG-175

President Obama to Announce Comprehensive Plan for Regulatory Reform

WASHINGTON – President Obama will lay out a comprehensive regulatory reform plan this afternoon to modernize and protect the integrity of our financial system. While this crisis has had many causes, it is clear now that the government could have done more to prevent these problems from growing out of control and threatening our overall economy.

The President will be joined by Treasury Secretary Tim Geithner, representatives from the regulatory community, consumer groups, the financial industry and me mbers of Congress for an event in the East Room later this afternoon.

The President's plan will:

- Require that all financial firms that pose a significant risk to the financial system at large are subjected to strong consolidated supervision and regulation
- Increase market discipline and transparency to make our markets strong enough to withstand system-wide stress and the potential failure of one or more large financial institutions
- Rebuild trust in our markets by creating the Consumer Financial Protection Agency to focus exclusively on protecting consumers in credit, savings, and payment markets.
- Provide the government with the tools needed to manage financial crises so it is not forced to choose between bailouts and financial collapse
- Raise international regulatory sta ndards and improve international coordination

Below are Links to the White Paper and Fact Sheets:

White Paper: Financial Regulatory Reform:
http://www.financialstability.gov/docs/regs/FinalReport_web.pdf

Fact sheets:
http://www.financialstability.gov/docs/regulatoryreform/requiring_strong_supervision_reg_finfirms.pdf
Requiring Strong Supervision And Appropriate Regulation Of All Financial Firms

http://www.financialstability.gov/docs/regulatoryreform/strengthening_reg_core-markets_infrastructure.pdf
Strengthening Regulation Of Core Markets And Mar ket Infrastructure

http://www.financialstability.gov/docs/regulatoryreform/strengthening_consumer_protection.pdf
Strengthening Consumer Protection

http://www.financialstability.gov/docs/regulatoryreform/providing_govt_tools_manage_fincrisis.pdf
Providing The Government With Tools To Effectively Manage Failing Institutions

http://www.financialstability.gov/docs/regulatoryreform/improving_internatl_reg_standards_co-op.pdf
Improving International Regulatory Standards And Cooperation

###

Monday, June 1, 2009

FILE FOR PROPERTY REASSESSMENT: July 2, 2009 - November 30, 2009

(info taken directly from Sacramento County Assessor website at http://www.assessor.saccounty.net/DeclineinValueReassessments/SAC_ASR_DF_Decline_Value)

**DOWNLOAD RE-ASSESSMENT APPLICATION HERE**

Decline in Market Value (Prop 8)
Inquire about the availability of documents in alternate formats.

Proposition 8, passed in November 1978, amended Proposition 13 to recognize declines in value for property tax purposes. As a result, Revenue & Taxation Code Section 51 requires the Assessor to annually enroll either a property’s Proposition 13 base year value factored for inflation, or its market value as of January 1st, whichever is less.

Decline in market value, Prop 8 assessments, are TEMPORARY reductions that recognize the fact that the market value as of the January 1 lien date of a property has fallen below its current Prop 13 factored value. Once a Prop 8 reduced value has been enrolled, that property’s value must be reviewed each year as of the January 1st lien date, to determine whether its market value is less than its Prop 13 factored value. Prop 8 values can change from year to year as the market fluctuates. When the market value of the Prop 8 property increases above its Prop 13 factored value, the Assessor will once again enroll its Prop 13 factored value. In no case may a value higher than a property’s Prop 13 factored value be enrolled.

Properties enrolled under Prop 8 provisions are not subject to the 2% annual increase limitation that applies to those enrolled under Prop 13 provisions.

The Prop 8 Process is as follows:

Property owner provides Assessor with facts they feel justify a reduction in value and requests a review of the property’s value. (The Assessor may initiate the review if the problem is discovered independently*.)

Appraisal staff reviews market data, estimates the property’s market value as of January 1st and then compares this market value to the property’s current Prop 13 factored base year value.

If the January 1 market value is below factored Prop 13 value, then:

Assessed value is lowered to market value for next fiscal year.
Owner is notified of reduced value.
New tax bill is based on lower value for next fiscal year.
The following year, Assessor repeats process and enrolls the January 1 market value at that time or Prop 13 factored value, whichever is lower.
If January 1 market value is higher than factored Prop 13 value, then:

No change in assessed value is made, and
Owner is notified that value will not be reduced.
If owner still feels value should be reduced, then owner may file an assessment appeal with the Assessment Appeals Board, from July 2nd - Nov 30th each year.
Appeals Board hears evidence from owner and Assessor; the Board then determines proper assessed value
*The Assessor may also initiate the Prop 8 process without a request from an owner.

The office constantly monitors market conditions and, when practical, lowers assessed values on a mass basis. Owners are notified and may file an Assessment Appeal if they feel the value was not lowered sufficiently. Read more about the Assessment Appeals process and deadlines.

Although the market values of all properties may suffer a significant decline during a recession, not all will qualify for a Prop 8 reduction. The current market value must fall below the Prop 13 factored base year value (assessed value) before the Assessor can recognize the decline. Following are examples of how the Assessor processes declines in value.

--------------------------------------------------------------------------------



Examples of Assessments Involving Properties Declining in Value:

Example 1

Home purchased January 2005, for $400,000 and assessed with $400,000 base year value.

On January 1, 2006, factored base year (assessed) value is $408,000 ($400,000 +2% inflation) but market value has declined to $300,000.

Action: Assessor reduces assessed value to $300,000 for 2006-2007 assessment roll.

On January 1, 2007, the home’s value continues to decline and is now $280,000, while its factored base year value has risen to $416,160 ($400,000 +2% inflation compounded for 2 years).

Action: Assessor reduces assessed value to $280,000 for 2007-2008 assessment roll.

On January 1, 2008, the homes market value increases to $350,000 while its factored base year value rises to $424,483 ($400,000 +2% inflation compounded for 3 years).

Action: Assessor raises assessed value to $350,000 for 2008-2009 assessment roll.

On January 1, 2009, the home’s market value increases to $450,000 while its factored base year value rises to $432,972 ($400,000 +2% inflation compounded for 4 years).

Action: Assessor reinstates factored base year value of $432,972 for the 2009-10 assessment roll.

Example 2

Home is purchased in 1986 for $130,000.

On January 1, 2005, the current market value of the home has risen to $300,000 well above its Prop 13 factored base year value of $185,713 ($130,000 + 2% inflation compounded for 19 years).

For January 1, 2006, the market value falls to $200,000. This is still above the Prop13 factored base year value of $189,427 ($130,000 + 2% inflation compounded for 20 years).

No Prop 8 reduction is granted for the 2006-2007 assessment year, even though the property has lost $100,000 in value over the last year. The factored base year value ($189,427) is still less than the market value ($200,000).

It is important to understand that Prop 8 reductions are not permanent and may decrease or increase more than 2% from year to year. Also, Prop 13 base year values suspended by Prop 8 values continue to increase by an annual inflation factor of no more than 2% per year.

--------------------------------------------------------------------------------



If you have other questions about the Decline in Value Prop 8 process, you may direct them to the Assessor’s Real Property Duty Appraiser at (916) 875-0700, between 9 A.M. and 4 P.M., Monday through Friday. You may also visit the Duty Appraiser in person at 3701 Power Inn Rd, Suite 3000, Sacramento, CA 95826-4329, between 8 A.M. and 5 P.M.

Thursday, May 14, 2009

says says: Obama Administration Announces New Details on Making Home Affordable Programhttp://ping.fm/52yRe
is sharing: HUD Certified FREE Foreclosure Avoidance Counseling site: http://ping.fm/hb4AJ

Tuesday, May 12, 2009

is sharing: It's harder to recover from a foreclosure (8 yrs) than a short sale (2 yrs).

Friday, May 8, 2009

shares: for those who rain love on you... a seed needs rain to grow, for those who throw dirt on you... a seed needs dirt to grow too! :0)

Wednesday, May 6, 2009

is praying for our Pastor Ephraim Williams of St Paul Baptist Church. His precious wife, Sis Carrie Sue, passed this morning.

Monday, May 4, 2009

is reading up on Props 1A- 1F before v-day! http://ping.fm/InYvv
Tough times don't last, tough people do. Encourage someone today or help them if you can.
is sharing a site to help u earn some xtra cash on the side: http://ping.fm/ydIY1

Saturday, May 2, 2009

30 days to Financial Fitness. Today is day 1 of 30. Will cook @ home all month, no fst fd! Trying to $ave $300 this month.

Friday, May 1, 2009

California Dept of Real Estate, Consumer Fraud Alert: http://ping.fm/5Ucum

Wednesday, April 29, 2009

Up to $8,000 could still be yours!

The 2008 tax deadline has passed, but you still have an opportunity to take advantage of an unprecedented offer. If you haven't owned a home in 3 years—or never at all—you may still be eligible to receive a federal First-Time Homebuyer Tax Credit of up to $8,000 this year. Simply close on your new home before December 1st, 2009 and file an amendment to your 2008 return—you could receive your Tax Credit before the year ends!

Remember, not everyone's situation is the same. Do your homework and consult with your tax professional to see if you will qualify.

~km :)

Wednesday, April 22, 2009

did day two of five this week at the gym - tonight: 1 hr step class w/abs, 20 min on the treadmill, and 30 min arms and legs (4 sets of 12)... three more days to go...

Tuesday, April 21, 2009

I'm voting for Meg so don't even ask me about Gavin.

Monday, April 20, 2009

Beware of Foreclosure Rescue Scams - Help Is Free!

Beware of Foreclosure Rescue Scams - Help Is Free!

There is never a fee to get assistance or information about Making Home Affordable from your lender or a HUD-approved housing counselor.
Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan. Do not pay – walk away!

Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your house. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

Never submit your mortgage payments to anyone other than your mortgage company without their approval.

The Obama Administration has launched a coordinated effort across federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times. Click here for more information.
Geithner is addressing the Mortgage Fraud issue - Be informed not conned... please view for your protection: http://ping.fm/d2Jkc
http://ping.fm/eN7i0

Friday, April 17, 2009

is preparing to wrap it up early today in preparation for tonight and this weekends' womens' conference "Yes We Can!" at St Paul - guest speaker Jewel Diamond Taylor!!! If you registered on time, I will see you there!!! You will be tremendously blessed!
is sharing a WONDERFULLY uplifting story... http://ping.fm/hUu4C

Wednesday, March 4, 2009

Relief for Responsible Homeowners One Step Closer

(From The Press Room of the US Dept of the Treasury)
March 4, 2009
tg-48

Relief for Responsible Homeowners One Step Closer Under New Treasury Guidelines

With Detailed Program Requirements, Servicers Can Now Begin
`Making Home Affordable' Loan Modifications

Extensive Borrower Outreach Efforts Underway

Washington, DC – The Obama Administration today announced new U.S. Department of the Treasury guidelines to enable servicers to begin modifications of eligible mortgages under the Administration's Homeowner Affordability and Stability Plan – announced by President Barack Obama just two weeks ago. The release of detailed requirements for the "Making Home Affordable" program facilitates implementation of the critical provisions that will help bring relief to responsible homeowners struggling to make their mortgage payments, while preventing neighborhoods and communities from suffering the negative spillover effects of foreclosure such as lower housing prices, increased crime and higher taxes.

"Two weeks ago, the President laid out a clear path forward to helping up to nine million families restructure or refinance their mortgages to a payment that is affordable now and into the future. Today, we are providing servicers with the details they need to begin helping eligible borrowers," said Treasury Secretary Tim Geithner. "It is imperative that we continue to move with speed to help make housing more affordable and help arrest the damaging spiral in our housing markets, just as we work to stabilize our financial system, create jobs and help businesses thrive. Economic recovery requires action on all three fronts."

"Only two weeks after the President unveiled his plan to help promote homeowner affordability, we are moving forward today with these guidelines to implement that plan," HUD Secretary Shaun Donovan said. "This step forward represents a tremendous coordinated effort between major government and regulatory agencies to help bring relief to America's housing market and homeowners. This plan will help make home ownership more affordable for nine million American families and in doing so, help to stop the damaging impact that declining home prices have on all Americans."

The guidelines will implement financial incentives for mortgage lenders to modify existing first mortgages and set standard industry practice for modifications.

Treasury announced today that the Making Home Affordable program will also include additional incentives for efforts made to extinguish second liens on loans modified under this program. Extinguishing second liens will make mortgages more affordable, improve loan performance, and help prevent foreclosures.

In conjunction with the release of the new guidelines, Treasury, HUD and other members of a broad interagency task force have prepared consumer friendly Q&A and eligibility assessment tools for borrowers available at FinancialStability.gov. To ensure the program can be implemented as quickly as possible, the agencies also have conducted extensive outreach with housing counselors and mortgage servicers, including the development of call center phone scripts, a training plan and detailed guides, to prepare them for incoming inquiries from borrowers in the wake of the guidelines release.
An expanded online resource will soon be available for borrowers, and agency representatives will fan out across the country in the coming weeks to conduct outreach at homeownership events in communities hardest hit by the housing crisis.

###

REPORTS

Modification Program Guidelines
Summary of Guidelines
Fact Sheet

Friday, February 27, 2009

Qualifying A Condo for an FHA loan

If you are in the market to purchase a condo and are using an FHA loan (most loans now are FHA), then you or your agent can use this site to see if the home that you want to make and offer on is FHA approved.

What does that mean? It measn when many of these developments were constructed several years ago, there were no FHA loans and so no one bothered to go thru the FHA certifiation process. So many of the developments are not FHA approved.

Single family homes are usually approved for FHA financing as long as the price parameter and the condition requirements are met. Attached housing (condos and townehomes) need to be FHA approved. Read further for more details on how this works:


HUD Section 234(c) of the National Housing Act provides authority to insure any mortgage covering a one-family unit in a project coupled with an undivided interest in the common areas and facilities which serve the project. The project may include dwelling units in detached, semidetached, row, garden-type, low- or high-rise structures. Generally these types of properties are referred to as Condominiums.

HUD will insures mortgagees against losses on mortgage loans used for buying a condo or to refinance individual units in eligible condominium projects provided that they meet certain guidelines.

A. Project Eligibility. The condominium project must be on HUD's approved condominium list.
B. Applicant Eligibility. Eighty percent of the HUD-insured mortgages in a condominium project must be the principal residence of the owners (owner-occupants).
C. Maximum Insurable Mortgage: Same as Section 203(b) (except that the mortgage amount must be in multiples of $50).
D. Minimum Investment: Same as Section 203(b).
E. Mortgage Term: Same as Section 203(b).
F. Mortgage Insurance Premium: Monthly+Upfront MI of 1.5%
G. Refinancing: Same as Section 203(b).

If the Condominium is not approved then the Lender may go through the "Spot Approval" process.

The following requirements must be satisfied before a spot loan is endorsed:

• The condominium project must be complete. There should be no ongoing or anticipated addition of any units, common elements, and/or facilities.
• Control of the common areas of the project must have been turned over to the unit owners association for at least one year.
• The owners association must provide evidence that the project has the appropriate hazard, liability and flood insurance.
• Individual units in the project must be owned in fee simple or be an eligible leasehold interest. The project's legal documents must provide for undivided ownership of common areas by unit owners. By virtue of this ownership, unit owners must have the right to use all facilities and unrestricted common elements.
• The project's documents should not place any legal restrictions on conveyance. Any provisions that seek to limit the free transferability of title is generally unacceptable. Such restrictions include rights of first refusal and restrictive covenants. Certain governmental or nonprofit programs designed to assist in the purchase or rental of low- or moderate-income housing are exempted from the restrictions on conveyance provisions.
• At least 90% of the units in the project must have been sold.
• At least 51% of the units in the project must be owner-occupied.
• No single entity may own more than 10% of the units in a project. "Entity" includes an individual partnership, corporation, limited liability company, limited liability partnership, joint venture, investor group or other natural or legal person qualified to hold an interest in real property. The 10% restriction does not apply when the ownership of less than three units would disqualify an otherwise eligible project.
• HUD recognized that the 10% cap on the number of units that may secure FHA insured mortgages in a given project can place a small regime at a disadvantage, since only a few units will invoke the limit. Accordingly, a two-tiered system was established. For condominium projects having more than 30 units, no more than 10% of the units may have FHA insured loans at any given time. Condominium projects consisting of 30 units or less, can have up to 20% of the units encumbered by FHA insured mortgages under the spot loan rule.

Wednesday, February 25, 2009

An Angry Letter to Bank of America - A Day in the Life...

Message :

Hi Todd

After calling in again this week to get the
approval Bank of America has been sitting on, I
was told once again that "he will call you today"

Unfortunately, it is now too late. The buyer's
offer on another property in that area has been
accepted at $39,000. In addition, the buyer then
told his agent that it is ridiculous to wait on
this property when the area values continue to
drop right before his eyes while waiting.

Further, he has found two more at the same price,
$40k and has asked his agent to remove his money
from escrow and transfer to the new escrow
account in preparation to offer on the other
properties.

Todd, I know you don't have much time to read
this or much control over what has occurred but I
must say that I am greatly disappointed in your
company's system and jaded about the process and
principles of Bank of America at this time.

As a short sale negotiator and a first-hand
witness to the horrific one-year ordeal that I
have endured with your company, I am sure you
have experienced this before. It is sad that all
I have gained from this experience is a
paper trail of incompetence on the part of Bank of
America. It is enough to write a short book. I
could literally just print it and publish it.

This transaction has moved from the original all
cash offer of 60K, to 68K (at the unsubstantiated
request of B of A), to 71K (again at the
unsubstantiated request of B of A), and finally
down to 66K (at the substantiated request of the
buyer's lender... B of A, after the buyer took
out part of his cash to purchase a comparable REO
property in the same neighborhood).

Why do I say unsubstantiated? Because most of
your bank's "appraisers" are in it for you. The
very same tactics they used several years ago to
get "creative" loans approved they are now using
to get short sales denied or prolonged to the
death.

Yes, I understand that they are working on behalf
of the mortgage holder, as it should be, but they
are not using appropriate methods (they lump
properties without getting the specifics) and
they are self policed (which can be interpreted
as no policing).

When I ask about the methods used at coming to an
appraisal result, the negotiator on the other end
often times does not know how to interpret the
results because the negotiator in New York can
not be expected to know what the market
conditions are from county to county, let alone
state to state (I'm in Sacramento, CA).

The result, a short sale offer/transaction which
began in April of '08 is ending in February
of '09 with the buyer walking away and purchasing
two REO properties at the price of one short
sale. Even further, B of A loses four times, they
lose the buyer twice (lost the original offer
where they could have had more money, lost the
last offer where they could have had less but
could have had something), they lose the borrower
as a customer (the mortgage has gone unpaid for
one year), and they will lose again when the
property goes REO due to the costs and losses
incurred with that transition.

Talk about mismanagement of funds and resources.
Actually, there have been all kinds of
misappropriations with this one transaction. I am
left speechless and hopeless for those
individuals yet to come that will succumb to the
same fate with your company.

This is the sad reality that our legislators do
not see, yet they parade themselves and
grandstand on our televisions and radios as if
they are doing America a favor by passing laws
which, by the time they trickle to the general
populace, are way too little, and way too late.

For several weeks (weeks have turned to months)
now I have been told that the file was in a
closing status. For the sake of my personality
type, I will publish this letter in my blog as a
way of attaining some true form of closure.

Disgusted,

Keisha M. Mathews, REALTOR®
Century 21 Landmark Network
Short Sale Negotiator/Pre-Foreclosure Specialist
8801 Folsom Blvd #260
Sacramento , CA 95826
(916) 266-4835 office - direct
(916) 405-3886 efax

Monday, February 23, 2009

Homeowner Affordability and Stability Plan - Q&A

Borrowers Who Are at Risk of Foreclosure Are Asking:

What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?

The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.


Do I need to be behind on my mortgage payments to be eligible for a modification?

No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.

How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?

In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.

I do not live in the house that secures the mortgage I’d like to modify. Is this mortgage eligible for the Homeowner Affordability and Stability Plan?

No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage lender will check to see if the dwelling is your primary residence.

I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?

Yes. Mortgages on 2, 3 and 4 unit properties are eligible as long as you live in one unit as your primary residence.

I have two mortgages. Will the Homeowner Affordability and Stability Plan reduce the payments on both?

Only the first mortgage is eligible for a modification.

I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe?

The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender’s discretion modifications may include upfront reductions of loan principal.

I heard the government was providing a financial incentive to borrowers. Is that true?

Yes. To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.

How much will a modification cost me?

There is no cost to borrowers for a modification under the Homeowner Affordability and Stability Plan. If you wish to get assistance from a HUD-approved housing counseling agency or are referred to a counselor as a condition of the modification, you will not be charged a fee. Borrowers should beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if they require a fee in advance.

Is my lender required to modify my loan?

No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives and it is expected that most major lenders will participate.

I'm already working with my lender / housing counselor on a loan workout. Can I still be considered for the Homeowner Affordability and Stability Plan?

Ask your lender or counselor to be considered under the Homeowner Affordability and Stability Plan.

How do I apply for a modification under the Homeowner Affordability and Stability Plan?

You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks. If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or a HUD-approved housing counselor. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program.

What should I do in the meantime?

You should gather the information that you will need to provide to your lender on or after March 4, when the modification program becomes available. This includes

- information about the monthly gross income of your household including recent pay stubs if you receive them or documentation of income you receive from other sources
- your most recent income tax return
- information about any second mortgage on the house
- payments on each of your credit cards if you are carrying balances from month to month, and
- payments on other loans such as student loans and car loans.


My loan is scheduled for foreclosure soon. What should I do?

Contact your mortgage servicer or credit counselor. Many mortgage lenders have expressed their intention to postpone foreclosure sales on all mortgages that may qualify for the modification in order to allow sufficient time to evaluate the borrower's eligibility. We support this effort.


Borrowers Who Are Current on Their Mortgage Are Asking:

What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?

Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.

How do I know if I am eligible?

Complete eligibility details will be announced on March 4th when the program starts. The criteria for eligibility will include having sufficient income to make the new payment and an acceptable mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.


I have both a first and a second mortgage. Do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible to refinance under the Homeowner Affordability and Stability Plan. Your eligibility will depend, in part, on agreement by the lender that has your second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.


Will refinancing lower my payments?

The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate. These borrowers, however, could save a great deal over the life of the loan. When you submit a loan application, your lender will give you a "Good Faith Estimate" that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.


What are the interest rate and other terms of this refinance offer?

The objective of the Homeowner Affordability and Stability Plan is to provide borrowers with a safe loan program with a fixed, affordable payment. All loans refinanced under the plan will have a 30 or 15 year term with a fixed interest rate. The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon notes.

Will refinancing reduce the amount that I owe on my loan?

No. The objective of the Homeowner Affordability and Stability Plan is to help borrowers refinance into safer, more affordable fixed rate loans. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.

How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac?

To determine if your loan is owned or has been securitized by Fannie Mae or Freddie Mac and is eligible to be refinanced, you should contact your mortgage lender after March 4, 2009.

When can I apply?

Mortgage lenders will begin accepting applications after the details of the program are announced on March 4, 2009.

What should I do in the meantime?

You should gather the information that you will need to provide to your lender after March 4, when the refinance program becomes available. This includes:

- information about the gross monthly income of all borrowers, including your most recent pay stubs if you receive them or documentation of income you receive from other sources
- your most recent income tax return
- information about any second mortgage on the house
- payments on each of your credit cards if you are carrying balances from month to month, and
- payments on other loans such as student loans and car loans.