FHA Refis for Underwater Borrowers
FHA has launched a refinancing program to assist homeowners who owe more on their mortgages than their home is worth. Beginning Sept. 7, the agency will offer qualified non-FHA borrowers the opportunity to refinance with an FHA-insured mortgage on their primary residence. Borrowers must be current on their existing mortgage, qualify under FHA underwriting requirements, and have a credit score of at least 500. The first lien holder must agree to write off at least 10 percent of the remaining amount owed under the mortgage, bringing the combined loan-to-value ratio of all mortgages to no more than 115 percent. The LTV for the new FHA mortgage may not exceed 97.75 percent. The Treasury Department will provide incentives to second lien holders who agree to forgive all or part of their liens.
Buyers beware!!! Congress has just noted that tens and thousands of people have taken advantageof the first time home buyer tax credit fraudulently. In many cases the tax payer claimed the credit prior to them actually closing escrow on any property. In other cases individuals simply wrongfully claimed the tax credit. In one case the first time home buyer tax credit was claimed by a four year old child, according to Treasury Inspector General for Tax Administration J. Russell George.
He told a House panel that ‘more than 19,000 people filed 2008 tax returns or amended returns claiming the credit for homes they had not yet purchased.”
To read more about this issue:
http://news.yahoo.com/s/ap/20091022/ap_on_bi_ge/us_homebuyers_tax_credit
NOTE TO BUYERS:
The Department of the Treasury will conduct a full investigation for everyone who claims this tax credit to verify eligibility, so please make sure that you stay on the right side of things on this issue.
If there is some grey area for you or you are not sure if now is the right to claim the home buyers credit please contact your local tax professional prior to submiting your claim. I would hate to see any of you on the wrong side of the law!
-Shira
The California Department of Real Estate just announced that Advance Fees for Loan Modification Services is now ILLEGAL! So, to all you consumers looking for Loan Modification services if you are asked to pay any up front cost, run in the other direction because you are not dealing with an honest or lawful person!
As of October 11, 2009, advance Fees for Loan Modifications is Now Prohibited, effective immediately. This announcement provides great relief to Realtors, because for the past few years we have watched struggling home owners being taking for a ride by these Loan Modification specialist. We have been saying for years now that ‘charging struggling home owner giving them nothing but a bill and false hope should be a crime’ and thankfully now it is!!!!
To learn more about this new policy visit the California Department of Real Estate website or follow the below link:
http://www.dre.ca.gov/cons_adv_fees_alert.html
Hopefully, this information helps.
Many buyer’s seem to be on the fence and have not decided to take the steps needed to get to the other side, THE CLOSED DEAL. The pride of ownership! The American Dream!!!
I believe that it is the national media that is creating fear in the population. This has created a buyer that is afraid to move. I am a REALTOR and I am here to say that there has never really been a better time for buyers! Many first time home buyers will do better here in Monterey paying a monthly Mortgage instead of paying their monthly rents. I would encourage anyone interested in any type of transaction to contact a local REALTOR who can provide you with local information.
We must all remember that Real Estate trends are National, in that we are all connected my the National currency the dollar! The financial trends in one place effects the Nation as a whole. So, when the dollar is strong it is strong everywhere and when the dollar is facing difficulty we face those challenges together. With that said we all buy and sell in our local market. The price of a home in Nevada will not give a California seller an accurate price index. What is happening here in California is very different from what is happening in Ohio, Nevada and Utah. Also, the things taking place in Monterey Real Estate are very different from the happenings in Bakersfield. Accordingly, it is very important for buyers and sellers to get their information from local experts. This is why I encourage everyone to contact your local Realtor to get an accurate picture of the local market.
