Category Archives: Mortgage Information

Beware of Snags in Federal Refinance Program

Posted on March 12, 2012 | Leave a comment

The most ambitious federal mortgage program to date aimed at millions of underwater homeowners is poised to take off in the coming two weeks, yet some key issues could hinder borrowers’ participation. One of them involves something most owners know nothing about: Who was your mortgage insurer on your underwater loan?

Though it was announced by the Obama administration late last year, the so-called HARP 2.0 — the second version of the Home Affordable Refinance Program — will only hit full stride around the middle of this month, when Fannie Mae and Freddie Mac finish tweaking their automated underwriting systems to accept applications, and lenders and mortgage insurance companies start handling large volumes of requests.

The revisions are crucial for owners who have outstanding mortgage balances in excess of 125 percent of the current resale values of their homes. Under the second version of HARP, there is no upper limit on permissible loan-to-value ratios (LTVs). You can owe twice or even three times the value of your home and still qualify for a refinancing at today’s low interest rates. The earlier version imposed a limit of 125 percent, which cut out millions of the hardest-hit victims of the real estate bust.

Disclaimer: for information and entertainment purposes only

Homeowners Share their Frustration With Others About Having Underwater Mortgages

Posted on March 8, 2012 | Leave a comment

Would you share with online strangers a photo of yourself with how underwater you are on your mortgage?

Are you underwater? Contact the appraisers at Southern California Appraisal Services for an appraisal now.

Three advocacy groups hope you will in order to prove a point to Edward DeMarco, the regulator of Fannie Mae and Freddie Mac.

DeMarco has frustrated state and federal leaders on his stance against writing down the principal balances of Fannie and Freddie borrowers who owe more than their homes are worth. Among those leaders is California Attorney Kamala Harris.

The grass-roots groups, who have called for the firing of DeMarco, have created a Tumblr blog called “America Underwater.” The blog, which officially launched Tuesday at america-underwater.tumblr.com, features photos of homeowners who report that they have negative equity.

The entries show a photo of the borrower holding a placard with a negative figure, indicating how underwater they are. There’s also a spot under the image where the homeowners can disclose as much or as little as they want.

An entry posted Tuesday shows a woman holding a sign that says “-$53,000” and the message:

“I am still $53K underwater AFTER a loan modification. My loan servicer won’t even consider writing down/wiping out my 2nd mortgage balance of $17K, which is just common sense!!”

Disclaimer: for information and entertainment purposes only

Obama Unveils Aid for Mortgage Holders – FHA and VA Too!

Posted on March 7, 2012 | Leave a comment

WASHINGTON — President Barack Obama on Tuesday unveiled two new housing initiatives intended to assist members of the military and Americans with government-insured loans.

In his first major news conference of 2012, Obama announced a new plan to cut refinancing fees for any loan insured by the Federal Housing Administration. The president also outlined a new agreement with banks to review foreclosures for members of the military that have taken place since 2006 and provide compensation to anyone who wrongfully lost a home.

Neither proposal requires congressional approval. But they are also more modest than an earlier proposal for a $10 billion refinancing plan that Obama asked lawmakers to pass in his State of the Union address.

Here’s how the FHA plan would work: Currently, the federal government offers a program to allow borrowers with loans backed by the Federal Housing Administration to refinance their loans at lower cost. But the fees for refinancing have kept many borrowers from taking up the government on its offer. The administration estimates that an additional 2 million to 3 million homeowners could end up refinancing under its program.

Under the old program, an FHA borrower who owes $175,000 on his or her mortgage could refinance into a 4 percent loan and whittle the monthly payments down to about $1,010 per month. Under the new program, with the lower fees, that same borrower could reduce his or her mortgage payments further, down to $915 per month.

Meanwhile, the administration has also struck an agreement with various banks and lenders to conduct a review of foreclosure practices for military members. Any service member or veteran whose home has been wrongly foreclosed on since 2006 will receive compensation equal to a minimum of $116,785 plus any home equity lost since the foreclosure. This compensation will come from the mortgage servicers who conducted the foreclosures. In addition, any service member wrongly denied the opportunity to refinance will receive a refund of money lost.

Disclaimer: for information and entertainment purposes only

Category Archives: Mortgage Information

Beware of Snags in Federal Refinance Program

Homeowners Share their Frustration With Others About Having Underwater Mortgages

Obama Unveils Aid for Mortgage Holders – FHA and VA Too!

Follow Blog