Too many people now of days are getting those irritating phone calls from debt collectors. Other are just barely making the monthly mortgage payments on a house they owe more on, than its worth.
Don’t walk away and let the house go into foreclosure. This will prevent someone from being able to buy another house for at least 4 years. Plus the money the lender loses on the resale of the foreclosure, the IRS counts as earn income and my charge taxes on the difference.
If a home owner is a couple months behind with his mortgage payment here is a couple of things he can do to keep his house. First call the bank to see if they will refinance the loan. If the bank is not cooperating don’t threaten to walk away from the house. The second thing to do is for the home owner to go see his senator. He might be able to help get the bank to refinance you house. The Senator might even get them to reduce the principle of the loan to be comparable with Reno/Sparks Nevada Real Estate prices.
If steps one or two doesn’t work or if a person doesn’t want to live in the house. Sell the house for less than owed. This is called a short sale. This will allow a person to buy another house in two years instead of four. It is still advisable to see a lawyer and a CPA to make sure the debt is forgiven and the IRS doesn’t tax the seller on the forgiven debt. I would NOT recommend taking on a short sale purchase without your own representation of a knowledgeable licensed Nevada Real Estate Agent.
As a Reno – Sparks real estate consultant I encourage any question or comments on the Reno – Sparks real estate market or any of the articles I posted here.
I can be reach at chance at ballard-company.com
FHA interest rates down to 5%
First time tax credit of $8000
Low FICO score programs
First time home buyer programs
Rural housing 100% loan programs
As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com
■ For FICO scores between 550-619
■ 3.5% down payment
■ 30-year, fixed-rate FHA financing
■ Purchase and refinance
■ Gifts from close relatives acceptable
■ Job-loss insurance until 2011†
■ First-time homebuyers may qualify for up to $8,000 in
Federal tax credits‡
As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com
A person I know has been trying to refinance his house for over 14 months. He needed a lower monthly payment in order not to lose his house. His bank was not cooperating with him so he contacted his senator. Once his senator’s office contacted the bank and identified themselves they were transferred to the president of the company. In efforts to shorten a longs story, the interest was reduced to 4% for 5 years and the principle was reduced by $50,000. The most incredible part is this all happened in less than 2 weeks. Once again please understand, I cut a lot of things he did in order to keep this article short.
As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com
On February 18, 2009, President Obama announced his Homeowner Affordability and Stability Plan, designed to help up to 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages. In doing so, the plan not only helps responsible homeowners behind on their payments or at risk of defaulting, but prevents neighborhoods and communities from being pulled over the edge too, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs.
The key components of the plan are:
1. Government Sponsored Enterprises (GSEs) Refinancing for Up to 4 to 5 Million Responsible Homeowners with GSE loans to Make Their Mortgages More Affordable
2. A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners
3. Supporting Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac
from realtor.org
As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com
Mortgage rates across the board fell this week, a welcoming sign to potential buyers and home owners looking to refinance.
The 30-year fixed-rate mortgage averaged 5.04 percent this week, a drop from last week’s 5.16 percent. Last year at this time, the 30-year rate averaged 6.04 percent, Freddie Mac reports.
Freddie Mac reported the following for other rates for the week:
- 15-year mortgage rates: averaged 4.68 percent, down from last week’s 4.81 percent. Last year at this time: 5.64 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 5.04 percent this week, a drop from last week’s 5.23 percent. Last year at this time: 5.37 percent
- 1-year ARMs: averaged 4.8 percent, down from last week’s 4.94 percent. Last year at this time: 4.98 percent
“Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation,” says Frank Nothaft, Freddie Mac’s chief economist.
Source: Freddie Mac(02/19/09)
As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com
On February 18, 2009, President Obama announced his Homeowner Affordability and Stability Plan designed to help 7 to 9 million families avoid foreclosure by refinancing or modifying their mortgages. The plan also strengthens the federal commitment to Fannie Mae and Freddie Mac (the government sponsored enterprises, or GSEs).
Here are the key elements of the Obama plan:
Refinancing by the GSEs of loans that they own or guarantee. The GSEs will work with their loan servicers to develop a streamlined refinancing program for borrowers with loan-to-value ratios (LTVs) above 80 percent who now face difficulty refinancing.
A $75 billion Homeowner Stability Initiative—with lender, servicer, investor, and borrower incentives to make it work. The program is limited to loans at or below the GSE conforming loan limits.
More support for the GSEs, including doubling of potential Treasury investment from $100 billion to $200 billion for each GSE, to maintain their positive net worth. The plan also raises the cap on mortgages that the GSEs may hold in their portfolios by $50 billion to $900 billion.
From RSAR Association Press Online 02/20/09
As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com
The legislation contains two important housing provisions championed by NAR. The final stimulus bill increases the first-time home buyer tax credit to $8,000 and eliminates the repayment requirement of earlier legislation. In addition, the credit availability has been extended until December 1.
“These important provisions will help bring first-time home buyers to the market and reduce housing inventory,” said McMillan. NAR estimates that the home buyer tax provisions could stimulate up to 300,000 additional home sales, helping stabilize home values and potentially preventing some homeowners from being “underwater” on their mortgage, which can often lead to foreclosure.
The bill also reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac. “These higher loan limits are important to make mortgages affordable regardless of where you live. This will also help reduce inventory and improve liquidity in the overall mortgage market,” McMillan said.
This information was obtained from realtor.org.
As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com
ELIGIBILITY:
First time home Buyer:
A person who has not owned a house in the last 3 years is considered to be a first time home buyer.
Qualified Veteran:
Washoe County Income limits are:
Family of 2 or fewer: $83,400
Family of 3 or more: $97,300
Cities or towns less than 100,00 in population
BENEFECTS:
Mortgage Credit Certificate (MCC)
Is a tax credit that will reduce the federal income of qualified buyers.
Has the effect of reducing mortgage payments.
PROGRAM IMPACT:
Interest Rate 6% MCC Savings 1.8% Net Cost 4.2%
Monthly payments on $100,000 loan = $600.00 less monthly saving of $150 equals net cost of $450.00
This is just one of the benefits of this program. Lending rates will vary from buyer to buyer.
As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com
This is a complicated process, and it is always recommended a person talk to a CPA and/or an attorney before trying to sell a home for less than they owe the bank. The bank will usually require that a person be two months delinquent, before the bank will allow someone to start a short sale. Believe it or not the process has become a little simpler this year compared to last year. Now banks seem to be more prepared. They will send out a package that a person will have to fill out. This will have financial information and needs a letter of hardship stating why a person cannot make their mortgage payment. On every short sale the bank will open a case of fraud. This is one on the reason it usually takes so long. Sometimes it is a little easier and less stress on the owner, if a realtor is given permission to talk to the bank.
As a Reno/Sparks real estate consultant I always welcome any comments or questions on the Reno/Sparks real estate or any of the articles I posted. You can email me directly at chance at ballard-company.com
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