How To Buy A Bank Owned Property - Part 2

Here's how to buy a bank owned property (REO) in San Diego County.

How To Buy A Bank Owned Property - Part 1

Frustrated trying to buy a bank owned property in San Diego? This video teaches you how to succeed.

This Changes Everything You Knew About Short Sales

I just came back from a meeting with the Regional Sales Manger, REO Division, for a major bank. He told me that they have a new streamlined short sale process that should make the process very similar to a conventional sale. Go from offer to closing in 30 days!

It's been very successful in Northern California and they are now going to offer the proram in Southern California. I won't go into the details here, but part of the motivation is that they have incentives from the government to do short sales instead of foreclosures.

Their goals are:
1. Modification first using Home Affordability Modification Program guidelines (HAMP);
2. Do a short sale if possible
3. Foreclosure is the last resort.

And this one really floored me, you don't have to be behind in your payments! Even cash for keys is possible! These are exciting developments that could really help you if you find yourself struggling to make those mortgage payments. Call me right away to see if this applies to you, what have you got to lose? 800-469-6391.

Gov't Housing Coming To Your Neighborhood

Sometimes I feel like I've entered the Twilight Zone, that I've been transported into a parallel world where different rules apply. Consider this recent news release:

"Fannie Mae announces “Deed for Lease™” program
Fannie Mae last week announced a new Deed for Lease™ program. Deed for Lease allows borrowers to transfer their property back to the lender and then lease back the house at market rate. The lease period is for up to 12 months, with possible month-to-month contract extensions after that period. The program is designed for borrowers who do not qualify for or have not been able to obtain other loan-workout solutions, such as a loan modification.

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance also may be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31 percent of their gross income."

Does anyone have the slightest clue about the consequences of this? Imagine Fannie Mae (owned by the government) operating rental houses on your block. I shudder to think what this means to the real estate market, but I'm sure I'm worrying for no reason. Since the government is running this program, I'm sure we can expect nothing but efficiency and success.

How to Make Your Home Affordable

The Home Affordable Modification Program (HAMP) is the government modification program that President Obama put into place. This program is only available for owner occupied residences. It requires that a homeowner make 3 payments on a trial basis before Servicer can process the modification to see if it can become permanent.

HAMP is designed to help as many as 3 to 4 million financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term. The program provides clear and consistent loan modification guidelines that the entire mortgage industry can use.

Borrower eligibility is based on meeting specific criteria including:
1) borrower is delinquent on their mortgage or faces imminent risk of default
2) property is occupied as borrower's primary residence
3) mortgage was originated on or before Jan. 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties.

After determining a borrower's eligibility, a servicer will take a series of steps to adjust the monthly mortgage payment to 31% of a borrower's total pretax monthly income:
First, reduce the interest rate to as low as 2%,
Next, if necessary, extend the loan term to 40 years,
Finally, if necessary, forbear (defer) a portion of the principal until the loan is paid off and waive interest on the deferred amount.

To see if this will work for you, contact the HAMP Support Center at 888-995-HOPE.

Have you explored all of your loan options? If you need help, call us for free, no-obligation information for distressed homeowners.

How To Buy A Short Sale - Part 2

How To Buy A Short Sale - Part 1