On September 16, the House Financial Services Committee approved H.R. 6694 the "FHA Seller-Financed Down Payment Reform and Risk-Based Pricing Authorization Act of 2008' (Whew what a mouthful) Introduced by Rep AL Green (D-TX) will allow seller-funded down payment assistance to continue for certain borrowers only.
H.R. 3221, the Housing and Economic Recovery Act which became law in July 2008, actually prohibits Seller Down payment Assistance which began in October 2008. H.R. 6694 would allow seller-funded down payment assistance for borrowers with credit scores above 619. Borrowers with scores between 620-680 will be required to pay a higher up-front premium (3%) and higher annual premiums (1.25%. Those above 680 will not have to pay the higher fees.
** NAR Washington News Report September 22, 2008
Showing posts with label mortgages. Show all posts
Showing posts with label mortgages. Show all posts
Saturday, November 29, 2008
Wednesday, November 26, 2008
Sharp decline in Mortgage Rates This Week
Sharp Decline in Mortgage Rates This Week
Mortgage rates declined Tuesday after the Federal Reserve said it would spend $600 billion to support the mortgage securities market.
Rates fell to 4 7/8 percent, a 1 1/8 percentage point decline. David Beadle, president of BestInfo, said it was the sharpest one-day decline since 1988.
"I hope that the effect is that it brings more investors home to investing in housing," said Alfred DelliBovi, president of the Federal Home Loan Bank of New York. “[Investors] have had a sense in the markets that anything connected with a mortgage is bad" even though most people pay their home loans, he said.
Source: Reuters News, Al Yoon and Lynn Adler (11/25/2008)
Let The H Team help you get pre-approved with Christie Gabel. A full service loan officer with years of experience.
Mortgage rates declined Tuesday after the Federal Reserve said it would spend $600 billion to support the mortgage securities market.
Rates fell to 4 7/8 percent, a 1 1/8 percentage point decline. David Beadle, president of BestInfo, said it was the sharpest one-day decline since 1988.
"I hope that the effect is that it brings more investors home to investing in housing," said Alfred DelliBovi, president of the Federal Home Loan Bank of New York. “[Investors] have had a sense in the markets that anything connected with a mortgage is bad" even though most people pay their home loans, he said.
Source: Reuters News, Al Yoon and Lynn Adler (11/25/2008)
Let The H Team help you get pre-approved with Christie Gabel. A full service loan officer with years of experience.
Thursday, November 20, 2008
Mortgage Foreclosure Debt Relief
Today’s Home Owners are facing a lot of stress due to changing market conditions that are forcing foreclosure or a short sale of their home..
As the government takes action to stabilize the housing market, homeowners must understand the potential tax implications and new rules regarding these often once in a lifetime transactions.
“It’s hard to believe, but prior to December of 2007, if a homeowner lost his house due to a bank foreclosure, and the bank forgave any difference between the price it was sold for and what was owed, the homeowner would owe additional income tax on that portion,” said Chris Kaucnik, Director of Marketing for HWA.
Michael J. Greenen, CPA and Certified Financial Planner offers an example, “Let’s say the homeowner owed $300,000 on the mortgage, but the foreclosure sale only brought in $200,000. Then the bank forgave the $100,000 shortfall, called cancellation of debt. The homeowner would have been liable for the income tax on the $100,000 debt forgiveness from the bank.”
“Now, because of the unique stresses in the housing industry lately and on our whole economy, last December Congress stepped in to provide temporary relief in the form of forgiving this debt, but only for the 2007, 2008 and 2009 tax years. After that, the old rule applies again,” adds Greenen.
There are conditions that apply to this tax relief:
– To be eligible, the mortgage must be for the principal residence, not vacation, investment or other properties.
– No more than $2,000,000 of forgiven debt can be excluded from taxable income.
– When part of the debt is from a home equity loan, it cannot have been used for purposes other than to build, buy or substantially improve the property otherwise that portion used for other purposes is still taxable.
– When a short sale occurs*, the portion of the mortgage the bank may forgive, including any commission expenses and other selling costs are taxable other than for 2007, 2008 and 2009.
– When the lender agrees to reduce a mortgage payment for a homeowner to keep them in their home, the amount it is reduced by is taxable other than for these relief years.**
– This Act also extended mortgage insurance as an itemized deduction through 2010 on mortgage contracts entered into between 12/31/06 and 1/1/11.
* A short sale is when a borrower is behind on the mortgage payments and the lender agrees the house can be sold for less than what is owed on the mortgage. But all proceeds must be turned over to the bank.
** This does effect eventual capital gain exclusions when the homeowner decides to sell the home. Consult with a professional tax accountant or attorney for advice and information as soon as possible.
Information provided from HWA.
Determine your Homes current value and possible sale price by contacting The H Team today.
As the government takes action to stabilize the housing market, homeowners must understand the potential tax implications and new rules regarding these often once in a lifetime transactions.
“It’s hard to believe, but prior to December of 2007, if a homeowner lost his house due to a bank foreclosure, and the bank forgave any difference between the price it was sold for and what was owed, the homeowner would owe additional income tax on that portion,” said Chris Kaucnik, Director of Marketing for HWA.
Michael J. Greenen, CPA and Certified Financial Planner offers an example, “Let’s say the homeowner owed $300,000 on the mortgage, but the foreclosure sale only brought in $200,000. Then the bank forgave the $100,000 shortfall, called cancellation of debt. The homeowner would have been liable for the income tax on the $100,000 debt forgiveness from the bank.”
“Now, because of the unique stresses in the housing industry lately and on our whole economy, last December Congress stepped in to provide temporary relief in the form of forgiving this debt, but only for the 2007, 2008 and 2009 tax years. After that, the old rule applies again,” adds Greenen.
There are conditions that apply to this tax relief:
– To be eligible, the mortgage must be for the principal residence, not vacation, investment or other properties.
– No more than $2,000,000 of forgiven debt can be excluded from taxable income.
– When part of the debt is from a home equity loan, it cannot have been used for purposes other than to build, buy or substantially improve the property otherwise that portion used for other purposes is still taxable.
– When a short sale occurs*, the portion of the mortgage the bank may forgive, including any commission expenses and other selling costs are taxable other than for 2007, 2008 and 2009.
– When the lender agrees to reduce a mortgage payment for a homeowner to keep them in their home, the amount it is reduced by is taxable other than for these relief years.**
– This Act also extended mortgage insurance as an itemized deduction through 2010 on mortgage contracts entered into between 12/31/06 and 1/1/11.
* A short sale is when a borrower is behind on the mortgage payments and the lender agrees the house can be sold for less than what is owed on the mortgage. But all proceeds must be turned over to the bank.
** This does effect eventual capital gain exclusions when the homeowner decides to sell the home. Consult with a professional tax accountant or attorney for advice and information as soon as possible.
Information provided from HWA.
Determine your Homes current value and possible sale price by contacting The H Team today.
Monday, September 29, 2008
What to do if you're facing foreclosure
Are you falling behind on mortgage payments? Has your loan been referred to an attorney? Are you receiving lots of junk mail, offering to buy your house? You must act fast to avoid losing your home. The most important step you can take is to start returning phone calls, asking for help from your mortgage lender, servicer, or housing counselor.
Most folks stop answering their phones or opening their mail. You have to become pro-active. Delaying and falling further behind will result in fewer options.
Your mortgage lender doesn't want to foreclose so by finding a solution that avoids foreclosure will be better for you and better for them. Foreclosure destroys your credit and will greatly reduce your ability to borrow money or buy another home in the future.
It is important to be open and honest about your financial situation with your lender or serviceing company. Here are the steps to take to prevent foreclosure:
· Call your lender or loan servicer and discuss your situation; The contact information will be on your monthly mortgage statement or coupon book.
· If you can't reach your lender or servicer or you do not receive help; Call Homeownership Preservation Foundation at 1-888-995-HOPE. Their experienced counselors can help you develop the best plan for your personal financial situation. This is a free service.
· Gather the information you will need. You will be asked to provide:
All correspondence from your lender,including any foreclosure notices
Mortgage statements showing your loan number
Your homeowner's insurance policy
Last two years of tax return for all borrowers named on the mortgage
Pay stubs or unemployment compensation verification
Proof of any other types of income, including child support, alimony, Social Security, or pension
Bank account statements
List of all monthly bills
· Understand all your options: Dependent on your situation, you may have several options which could include the following;
Back end add on; All missed payments are added onto the back side of your original loan. This option is the least desirable as these amounts accumualte interest at a higher interest rate.
Repayment Plan; Your lender may allow you to repay this amount over the remaining period of your loan.
Advance; Mortgage's owned by Fannie Mae may allow you to make an unsecured personal loan through a company such as HomeSaver Advance TM if your missed payments are due to a temporary financial hardship, contact your servicer.
Modification; In some rare cases, mortgage loan terms can be changed on a temporary or permanent basis to make the payment more affordable.
· Avoid foreclosure rescue scams; If there is any kind of fee associated with getting help, stay clear of it. Foreclosure scams will take advantage of your situation.
If your financial situation has changed significantly since you qualified for your home due to unemployment, divorce, job change/relocation, or medical issues, You may just need to sell your home as a result of the changes. Contacting a Realtor is your first step in getting your house sold and/or purchasing a more affordable home.
Pre-foreclosure or Short Sale Specialists work with borrowers to sell the home and use the proceeds to pay off the loan even if the proceeds are not enough to settle the entire balance. They normally will assist you in getting the mortgager to accept a lower price
As you can see there are a number of options available to the home owner who is facing possible foreclosure, but you have to act now and get your head out of the sand. Today the lenders, servicers and mortgage holders understand there are lots of homeowners in trouble and they want to help you prevent foreclosure.
Contact The H Team today to receive your free copy of Preventing Foreclosure.
Most folks stop answering their phones or opening their mail. You have to become pro-active. Delaying and falling further behind will result in fewer options.
Your mortgage lender doesn't want to foreclose so by finding a solution that avoids foreclosure will be better for you and better for them. Foreclosure destroys your credit and will greatly reduce your ability to borrow money or buy another home in the future.
It is important to be open and honest about your financial situation with your lender or serviceing company. Here are the steps to take to prevent foreclosure:
· Call your lender or loan servicer and discuss your situation; The contact information will be on your monthly mortgage statement or coupon book.
· If you can't reach your lender or servicer or you do not receive help; Call Homeownership Preservation Foundation at 1-888-995-HOPE. Their experienced counselors can help you develop the best plan for your personal financial situation. This is a free service.
· Gather the information you will need. You will be asked to provide:
All correspondence from your lender,including any foreclosure notices
Mortgage statements showing your loan number
Your homeowner's insurance policy
Last two years of tax return for all borrowers named on the mortgage
Pay stubs or unemployment compensation verification
Proof of any other types of income, including child support, alimony, Social Security, or pension
Bank account statements
List of all monthly bills
· Understand all your options: Dependent on your situation, you may have several options which could include the following;
Back end add on; All missed payments are added onto the back side of your original loan. This option is the least desirable as these amounts accumualte interest at a higher interest rate.
Repayment Plan; Your lender may allow you to repay this amount over the remaining period of your loan.
Advance; Mortgage's owned by Fannie Mae may allow you to make an unsecured personal loan through a company such as HomeSaver Advance TM if your missed payments are due to a temporary financial hardship, contact your servicer.
Modification; In some rare cases, mortgage loan terms can be changed on a temporary or permanent basis to make the payment more affordable.
· Avoid foreclosure rescue scams; If there is any kind of fee associated with getting help, stay clear of it. Foreclosure scams will take advantage of your situation.
If your financial situation has changed significantly since you qualified for your home due to unemployment, divorce, job change/relocation, or medical issues, You may just need to sell your home as a result of the changes. Contacting a Realtor is your first step in getting your house sold and/or purchasing a more affordable home.
Pre-foreclosure or Short Sale Specialists work with borrowers to sell the home and use the proceeds to pay off the loan even if the proceeds are not enough to settle the entire balance. They normally will assist you in getting the mortgager to accept a lower price
As you can see there are a number of options available to the home owner who is facing possible foreclosure, but you have to act now and get your head out of the sand. Today the lenders, servicers and mortgage holders understand there are lots of homeowners in trouble and they want to help you prevent foreclosure.
Contact The H Team today to receive your free copy of Preventing Foreclosure.
Friday, August 29, 2008
Missouri Real Estate Getting Ready to Rebound
Just released from Freddie Mac is the results of its Primary Mortgage Market Survey® in which the 30-year fixed-rate mortgage (FRM) averaged 6.40 percent with an average 0.6point for the week ending August 21, 2008, down from last week when it averaged 6.47 percent. Last year at this time, the 30-year FRM averaged 6.67 percent.
The 15-year FRM this week averaged 5.93 percent with an average 0.6 point, down from last week when it averaged 6.00 percent. A year ago at this time, the 15-year FRM averaged 6.12 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.03 percent this week, with an average 0.6 point, down from last week when it averaged 5.99 percent. A year ago, the 5-year ARM averaged 6.35 percent.
One-year Treasury-indexed ARMs averaged 5.33 percent this week with an average 0.7 point, up from last week when it averaged 5.29 percent. At this time last year, the 1-year ARM averaged 5.84 percent.
"Interest rates for fixed-rate mortgages continue to drift down as reports of economic weakness persist. July's leading economic indicators fell by more than the market consensus and manufacturing slowed in both the Philadelphia and Richmond regions. ARM rates, on the other hand, rose slightly after the Federal Reserves Open Market Committee hinted it might increase the overnight bank lending rate in its August 5th minutes," said Frank Nothaft, Freddie Mac vice president and chief economist.
However, the housing front is providing some encouraging signs. The pace of home price declines slowed down for the fourth straight month in June and the number of metro areas exhibiting monthly gains rose from seven to nine, according to the S&P/Case-Shiller® 20-city composite index. There are also signs more buyers may be getting ready to return to the market. The Conference Board says the share of households planning to buy a home within six months is now at its highest level since March. At the same time, the supply for unsold new homes is down to 10.1 months, the lowest since February, as single-family existing homes (excluding condos and co-ops) start to sell more quickly. Although, when condos and co-ops are included, the resale inventory did edge up."
Although St. Louis, Mo is not included in the 20 city reporting market all local Real Estate News has been positive. New home permits are up, Realtors are noticing more traffic through Open Houses and calls are up. Although the housing market is not out of the woods yet, most fellow practicioners are predicting another six months of minimum gains.
The 15-year FRM this week averaged 5.93 percent with an average 0.6 point, down from last week when it averaged 6.00 percent. A year ago at this time, the 15-year FRM averaged 6.12 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.03 percent this week, with an average 0.6 point, down from last week when it averaged 5.99 percent. A year ago, the 5-year ARM averaged 6.35 percent.
One-year Treasury-indexed ARMs averaged 5.33 percent this week with an average 0.7 point, up from last week when it averaged 5.29 percent. At this time last year, the 1-year ARM averaged 5.84 percent.
"Interest rates for fixed-rate mortgages continue to drift down as reports of economic weakness persist. July's leading economic indicators fell by more than the market consensus and manufacturing slowed in both the Philadelphia and Richmond regions. ARM rates, on the other hand, rose slightly after the Federal Reserves Open Market Committee hinted it might increase the overnight bank lending rate in its August 5th minutes," said Frank Nothaft, Freddie Mac vice president and chief economist.
However, the housing front is providing some encouraging signs. The pace of home price declines slowed down for the fourth straight month in June and the number of metro areas exhibiting monthly gains rose from seven to nine, according to the S&P/Case-Shiller® 20-city composite index. There are also signs more buyers may be getting ready to return to the market. The Conference Board says the share of households planning to buy a home within six months is now at its highest level since March. At the same time, the supply for unsold new homes is down to 10.1 months, the lowest since February, as single-family existing homes (excluding condos and co-ops) start to sell more quickly. Although, when condos and co-ops are included, the resale inventory did edge up."
Although St. Louis, Mo is not included in the 20 city reporting market all local Real Estate News has been positive. New home permits are up, Realtors are noticing more traffic through Open Houses and calls are up. Although the housing market is not out of the woods yet, most fellow practicioners are predicting another six months of minimum gains.
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