Posts tagged ‘fha’

Short Sales and Foreclosures- Do I have a Choice?

Today, we would like to take a bit of your time, commenting on the current housing issues and economic situation we are all facing.

Unless you have been off the grid…you know what our nation is going through in terms of the financial and economic hardships. One of the major concerns most everyone shares, is the state of housing.

For many if not most, a home is the largest investment a family or an individual will make. The uncertainty of job stability and-or steady employment for some and the unfortunate reality for others who may have fallen behind in their mortgage payments, are all to real.

If you happen to be facing foreclosure, we may potentially be of help in negotiating a Short Sale with your lender. What is a Short Sale? Basically a Short Sale is when the lender agrees to accept and settle on a lower or lesser amount than the full balance of the mortgage you owe.

A Short Sale will be reported as a debt that was discharged, but not paid in full. This will impact your credit rating and credit score less than if you allowed your property to foreclose. A Foreclosure will have a much MORE negative effect on your credit rating/score, In fact it could be as much as a 200 point lower credit score.

Another advantage of trying to negotiate a Short Sale is that currently under Fannie Mae regulations, mortgage borrowers can be eligible for a purchase loan only 2 years after a short sale.  Compare this to waiting  5 years, after a foreclosure. Also, some lenders may be slightly more inclined to loan on a mortgage to someone who went through a short sale rather than a foreclosure. 

By opting for the Foreclosure alternative, a Short Sale, a potential borrower shows that they were proactive in trying to pay off the majority of their debt rather than simply giving up or walking away from their home.

Now we are not saying that a Short Sale is for everyone. We are not saying that everyone who is facing the possibility or are in the beginning stages of Foreclosure will qualify for a Short Sale, but our Exit 24/7 Realty | NJ REO Servicing team may be able to help you in preventing a Foreclosure.

Please give us a call, 908-754-0111 or send an email to the Exit 24/7 Realty | NJ REO Servicing Office. [njreoservicing@gmail.com] So we may discuss the possibility of a Short Sale today.

September 2, 2010 at 12:00 pm Leave a comment

Reverse Mortgages

The number of homeowners taking out reverse mortgages tripled from 2005 to 2009. Is a Reverse Mortgage right for you?

Maybe, but it is a decision that needs to be carefully weighed. Here is a short video explaining some of the key positive and negative points regarding these types of loans.

http://online.wsj.com/video/personal-finance-minute-reverse-mortgages/52A87C5D-694F-48E4-B670-234C16A5568C.html

July 13, 2010 at 2:03 pm Leave a comment

Realtors, Brokers Target Home-Appraisal Rule

From WSJ-

http://online.wsj.com/article/SB10001424052748704289504575312671921408674.html?mod=WSJ_RealEstate_LeftTopNews

The mortgage-broker and real-estate industries are pushing to have a measure that would kill new home-appraisal rules inserted into pending legislation to overhaul financial-sector regulation.

The Home Valuation Code of Conduct, adopted in May 2009 to ensure appraiser independence, bars mortgage brokers and bank loan officers from selecting appraisers.

Mortgage lenders, on the other hand, are trying to fend off the measure. Several big lenders own or have a stake in companies that have seen a surge in business as a result of the new rules. (aka- AMC’s or Appraisal Management companies, this includes BPO Management Companies)

The Code of Conduct was adopted last spring by Fannie Mae and Freddie Mac, the government controlled mortgage giants, in settling a New York state attorney general’s probe of their appraisal standards.

(The entire investigation was brought about specifically by Andrew Cuomo, former HUD Secretary, who by the way made a series of BAD and politically motivated decisions between 1997 and 2001 that gave birth to the country’s current economic crisis.

He took actions that—in combination with other factors—helped plunge Fannie and Freddie into the subprime meltdown. He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no DOC, no money down loans.

Basically he legalized what a federal judge has branded “kickbacks” to mortgage brokers that fueled the sale of overpriced and unsupportable loans. Four to five million families are now facing foreclosure, and Cuomo is one of the reasons why. Now Fannie and Freddie are going to CONSUME ONE TRILLION DOLLARS of TAX PAYER money.

This criminal, cuomo, was also responsible for the collaps of Lehman Brothers. Basically, Lehman CEO didn’t kiss Cuomo’s behind during his campaign bid and didn’t kick in millions to his political run. So, out of spite, Cuomo opened up an investigation of Lehman.

The rest…is well history. Cuomo is nothing more than a mafia hoodlum. This guy has single handedly corrupted HUD, Fannie, and Freddie. Destroyed the Appraisal industry and brought about the demise of Lehman.

June 18, 2010 at 6:37 pm Leave a comment


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