Fannie Mae and Freddie Mac issued new short sale guidelines recently that mortgage servicers that hold loans backed by these entities must abide by. The guidelines officially went into play on June 15th. What this means is that real estate agents working with distressed homeowners should expect to receive a short sale decision within 30-60 days. This comes as a great relief to those involved in distressed home sales situations, as the process previously took up to 6 months.
Not only is a short sale an effective foreclosure alternative (when a homeowner determines they can no longer retain the home), but it keeps homes occupied which helps to maintain stable communities with less neighborhood blight.
The length of time short sale processes often take stood as the number one complaint from Realtors. As a response, the Federal Housing Finance Agency (FHFA) directed Fannie and Freddie to establish a new uniform set of minimum response times that loan servicers must follow to help facilitate a more efficient process.
So the question I leave you with is if this new directive will help bring more homes to the market to help the ongoing problem of minimal housing inventory? Stay tuned.
For those of you who may need to refinance, but, would like to avoid having to “income qualify” there are still some other Lending alternatives that we could explore for you. A phone call or appointment with your Mortgage Advisor is the way to find out what will work best for your personal situation.
All of us remember when the Spencer Johnson's book skyrocketed, Who Moved My Cheese, right?
In Who Moved My Cheese, Dr. Spencer Johnson realizes the need for finding the language and tools to deal with change--an issue that makes all of us nervous and uncomfortable, as most people are fearful of change. He describes how to have the right attitude towards change.
So now, I want to ask...Who moved the houses? I have client's that are so anxious and eager and ready to buy...but, someone moved all the houses?
Talk about causing a sad state of anxiety. Not just for the buyers, but for their REALTORS and Lenders, too. I can talk positive attitude all day long, but that is not manifesting into more Inventory in the housing market for me!
We all know there are many vacant/abandoned homes that are just not being prepped and put back on the market by the big banks that are holding them. Why? No one seems to know.
The sad thing is, with these great low rates and so many people wanting to be homeowners once again, potential Homeowners can't find a single home as most homes put on the market are scooped up immediately by cash investors who in turn intend to immediately put Renters/Tenants into them.
Neighborhoods that were once Owner Occupied developments, are now being filled with Tenants, that may end up with far less pride of ownership down the road. Parents who would like to buy, and get their children into certain school districts are turned away. Our communities that could be rebuilt are not able to.
So, I want to know, Who Moved My Cheese....and REALLY...WHO MOVED the HOUSES?
FHA released a New Program for FHA Streamline Refinances yesterday, June 11, 2012. This is an amazing opportunity to not only take advantage of the amazingly low interest rates, but, also be charged a reduced amount on the annual premium, of .01%. Also, your monthly M/I will be only .55% of the loan amount. These three factors together can dramatically reduce your overall housing payment. If you have an FHA Loan that was Endorsed before 5/31/2009, you need to speak to your Mortgage Advisor and determine how much money you can now save on your FHA Loan monthly payment. This product is easy to close as it does not require an Appraisal or Valuation of the property, it also requires much less documentation than that of an original Fha loan, thus called "STREAMLINE". Take advantage now of this great opportunity and learn more about this great new product FHA has just made available to many folks!
Whether you're getting ready to walk down the aisle or headed to Las Vegas there are certain things to keep in mind in regards to your credit to make sure it retains its integrity. Neither of these life occurrences in and of themselves will have a direct impact on your credit history or credit scores, however there are financial issues that may arise that could affect your credit.
"How is getting married going to affect my credit history?" Let's start by dispelling a myth – when you enter into marriage you do not inherit your spouse's credit. Each individual has their own separate credit file and they will always be separate even when you marry. If the person you are marrying has less than stellar credit you do not need to worry about these hiccups bleeding over to your credit unless you are added as an authorized user. Once you are married if you choose to open any joint accounts or buy a home together, those particular accounts will then show on each of your credit reports as a joint account. But any individual accounts you have now or open after you are married will show only on your credit report.
"What about my name changing? Will the credit bureaus recognize this?" It is always a good idea to notify any existing creditors if you plan to change your name so the credit history doesn't get interrupted. This is also true if you are changing your name after getting a divorce.
"I'm getting divorced. What happens with all of our joint debt and credit history?" Dealing with a divorce can be a bit more complicated. It is always best to try to separate any joint accounts before you begin the divorce process or they will continue to stay as joint accounts even after the divorce is final.
While the divorce decree may award the joint accounts to the other spouse, don't count on that to protect your credit record since any late payments or defaults will still show up on your credit report.
A good place to start.... Prior to getting married or getting a divorce it would be wise for each person to obtain individual copies of your credit reports from each bureau so you can know exactly their credit standing.
Marriage or divorce can each have its own ramifications as far as your credit is concerned, but with a little common sense and due diligence you should be able to handle either and still keep your personal credit history intact.
The first quarter of 2012 saw more short sales close nationally than foreclosures for the first time, meaning that banks were agreeing to more deals with the current homeowner. Short sales accounted for almost 24% of home purchases versus about 20% for sales of foreclosed homes. This short sales figure is roughly 50% higher than it was than Q1 of 2011.
Depository banks were never designed to be landlords, hold real estate, or voluntarily take on losses on thousands or millions of homes. However these banks can process short sales in much less time AND at significantly less cost than it takes to see a foreclosure all the way through. This ultimately means fewer foreclosures on the market, leading to fewer distressed properties on the market.
That being said, most would agree that the short sale process still takes far longer than it should. This is mainly because there is no uniform way to handle them (each depository bank has their own process). Thankfully helps appears to be on the way.
Fannie Mae issued guidelines to its servicers recently that hopes to improve the timing and methods of handling short sales. The industry said welcomed this news with a "What took so long?" (Fannie Mae completed 70,025 short sales in 2011 and 69,634 in 2010). The new rules apply to all conventional mortgage loans held in Fannie Mae's portfolio or at some point were securitized into Fannie Mae mortgage backed securities (MBS). While not required, servicers are encouraged to follow the guidelines for loans sold to Fannie Mae that are guaranteed or insured by government agencies.
Landmark Mortgage Group is a division of Opes Advisors and licensed by the CA Dept. of Real Estate, Real Estate Broker license 01458652 and NMLS 235584. Equal Opportunity Lender.