New Underwater Homeowner’s Refinance Program…Is it Right For You?
For homeowner’s who owe more on their loan than their home is currently worth, yet haven’t been able to refinance previously, there may be hope in the horizon. In an effort to bolster the economy, President Obama is proposing new legislation under the Federal Housing Administration (FHA). This new refinance program will allow homeowners to refinance at the current interest rates, which are at an all-time historic low.
“… Responsible homeowners shouldn’t have to sit and wait for the housing market to hit bottom to get some relief,” Obama said in his state of the union address. “And that’s why I’m sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low rates. No more red tape. No more runaround from the banks.”
Well that’s a big sigh of relief for nearly 3 million Americans!
So the next question is: Is this Right Program Right for You?
To qualify under this new proposed program, there are key factors that must be present.
1) If you owe more than your home is worth
2) You are CURRENT on your monthly mortgage payments
3) You have a mortgage held by Fannie Mae, Freddie Mac or a Private Held Institution that previously did not offer refinance options
This is a great opportunity for qualified homeowners to finally get some relief and taxpayer dollars back from the “bank bailouts”. Click here to find out more information.
Rebecca Austin discusses ” Common Loan Modification Questions “ the Law Office of Michael Groves
Radio Show: Home Help Radio with Rebecca on KPRZ
Date: 12-03-11
Rebecca Discusses ” Myths & Misconceptions about Underwater Home Values~A Guide for Homeowners in 2012 ” – If you are a homeowner whose house value is less than what you owe, or if you are falling behind on your mortgage payments, listen to this segment as Rebecca brings clarity to the common myths and misconceptions about Short Sale, Loan Modifications, and the Lending Institutions that hold your mortgage.
Radio Show: Home Help Radio with Rebecca Austin on KPRZ
Date: 12-03-2011
Rebecca Discusses the “ Current San Diego Real Estate Market ” January 2012
Radio Show: Home Help Radio with Rebecca Austin
Date: 12-3-2011
Rebecca Discusses some of the ” Strategies for Homeowners in 2012“
Radio Show: Home Help Radio with Rebecca Austin
Date: 12-24-2011
Rebecca Discusses some of the ” Smartest Real Estate Decisions for 2012 “
Radio Show: Home Help Radio with Rebecca Austin
Date: 12-24-2011
Rebecca discusses current ” Real Estate & Loan Modification Scams “–Seller’s BEWARE!
Radio Show: Home Help Radio with Rebecca Austin on KPRZ
Date: 12-24-2011
For those that homeowners who are currently unemployed and have a Freddie Mac loan, there may be some relief in sight.
Freddie Mac announced Friday an extension in forbearance for unemployed borrowers. Some unemployed homeowners may now receive up to 12 months forbearance.
According to Freddie Mac, almost 10 percent of delinquencies in the GSE’s portfolio are linked to unemployment. With a new directive from the GSE, loan servicers may evaluate and offer up to 6 months of forbearance in payments to unemployed homeowners. Once the 6 months is up, servicers may also be able to offer an additional 6 months of forbearance in certain circumstances, totaling a possible 12 months of forbearance.
“These expanded forbearance periods will provide families facing prolonged periods of unemployment with a greater measure of security by giving them more time to find new employment and resolve their delinquencies.,” said Tracy Mooney, SVP of single-family servicing and REO at Freddie Mac.
“We believe this will put more families back on track to successful long-term homeownership,” Mooney said.
Servicers may also evaluate borrowers already in an active forbearance plan to consider extending the terms according to the new directive from Freddie Mac.
Schedule a Consultation now to find out if your Mortgage is a Freddie Mac Loan, and to see if you qualify.
We’ve been hearing HARPS in the news after President Obama implemented the HARP Refinance Program for Underwater Home Owners. Here is what we are hearing from the trenches (some of which you may not hear on the evening news).
- This is a refinance program not a modification program so it’s a new loan.
- There’s a ton of exposure to the program in hopes that it makes people feel as though they are getting some new options BUT
- The plan is voluntary. Lenders and banks can alter or change any guideline they want.
- Even though Fannie & Freddie say they will refi up to 125% none of the secondary investors are allowing it! Right now the maximum is 95% LTV maximum. Rumor is they will only go to 100% LTV MAX.
- No private investors are even looking at it
- No principal reduction
- There will be costs! It’s up to the individual banks to determine fees such as underwriting, appraisals and other loan costs.
- The plan is only available in the hardest hit areas with the highest foreclosures of homes that are greater than 125% LTV such as south county San Diego, Inland Empire (Riverside, Moreno Valley, Murrieta, Etc.) and other hard hit counties. In other words it only is available where most people’s homes are WAY more upside down than this.
There are some who will qualify for this program, but not nearly as many as we’d hope. If you are underwater, your best bet is to ask for some free counsel from an Attorney. Why? Because an Attorney is the only person who can legally assist you in asking your bank to consider a lower rate or payment when you’re underwater.
Imagine if you were stuck in time fashion wise and you were still wearing all of your high school cloths. If you are attending High School this is fine, but if you are not, we have an issue to discuss. The good news is that we can spot you and your high cuts a mile away and so can you. All you need to do is look in the mirror and ask, “I wonder why I can’t find a good perm?”
Seriously, we look back at the trends and wonder, “what the heck was I smoking???” right?! The truth is that sometimes we are pulled my culture, media, and others to believe that the style of the times is the way to be and we sometimes subscribe. Remember the leg warmer phase? We’ll say the same thing about Silly Bands and Skinny Jeans for men if we’re not already….
What’s this have to do with Real Estate? What if an overleveraged lifestyle looked at ridiculous as a rolling up in your Gremlin?
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What if we woke up one day and decided as a culture that we are done working harder to get more stuff and all that junk became an outdated symbol of an old life of over consumption?
Is it possible that we are entering an era where free fun, family, giving back, compassion for the world, and sharing our gifts were in style? Regardless, wouldn’t it feel amazing if you did?
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In my business I spend time with people daily. Happy people and not so happy people. What I have found is that those who have taken an honest look at their Real Estate and Investment portfolios and made the adjustment from the 2005 to 2011 are happy the did. Those who are still stuck in 2005 and all the pressure of holding that lifestyle up are simply not.
Get a Handle On Your Home First
Why? It’s the biggest payment and if there are not enough to go around you have to decide. If your last refi or home purchase can be chalked up to “bad timing” you may need to have a Real Estate makeover. And, when you are liberated from useless debt with a payment you can afford, you will rejoin the ranks of the stylish San Diegans who are enjoying life in one of the most beautiful cities in the world.
An Online Home Evaluation will provide with:
- An accurate analysis of your home’s current worth (not an automated Zestimate, a real one),
- Look at the next 10 years (If we stay and do nothing, or if we modify, or if we sell and repurchase after 2 years with a plan and credit improvement) It’s all in color and right in front of you so you can make the best decision for you and your family with no pressure.
