Home Solutions Chicago Blog

Investors: You Too Can Refinance with Obama’s Plan!

2009-04-06T12:59:00.000-07:00

Foreclosure Investors, this is HUGE NEWS. Fannie Mae and Freddie Mac came out with their rules under Obama’s Make Homes More Affordable refinance campaign, and they’re more better than anyone expected… especially for owners of second homes and small investment properties.

Initial reports suggested that the refinancing would be for owner-occupied primary residences only… but the guidelines just sent to lenders by Fannie and Freddie say second homes and small rental properties are eligible, provided that their mortgages already are in the companies’ portfolios or securitizations and have been paid on time.

This is GREAT NEWS!!!

Brad German, a spokesman for Freddie Mac, said second homes and investment properties with one to four units are important because they may "help stabilize neighborhoods and housing markets." Refinancing investor-owned rental units, he added, can "help reduce renter evictions by putting landlords in a [more affordable] refi that improves their chance of success."

Under the administration’s programs, an estimated 4 million to 5 million owners whose mortgages are held by Fannie and Freddie will be eligible for refinancing to lower rates even though they would normally not qualify because of declines in property value. Applications are being taken by participating lenders now, although no loans are scheduled for funding by Fannie or Freddie until early April.

To make their programs as widely accessible as possible, Fannie and Freddie’s instructions offer a variety of concessions. On top of the list are credit scores. Both companies plan to waive their usual minimum borrower credit score requirements for most applicants. Participating lenders will still pull your scores and credit files, but generally there’s no specific cutoff point below which you’ll be rejected.

This is even BETTER NEWS!

Equally important for some highly leveraged homeowners, the companies are setting no limits on the amounts of existing second mortgages or home-equity-line balances, as long as the secondary loan creditors agree to re-subordinate their liens behind the new Fannie- or Freddie-funded mortgage.

Can it get any BETTER? YES, Read On…

Both companies also are suspending their standard rules requiring purchase of private mortgage insurance coverage when borrowers’ equity stakes are less than 20 percent. If loans carried mortgage insurance coverage when Fannie or Freddie first acquired them, that coverage will remain in force. But borrowers who never had insurance, and now have depressed equity stakes below 20 percent, will not be required to purchase new coverage.

Fannie and Freddie also plan to lessen the burden of other typical costs in connection with the mass refinancings, including appraisals, lender fees and closing expenses. Fannie will permit borrowers to finance those fees entirely by rolling them into the replacement loan amount. Freddie will allow financing of escrow fees, prepaid items and closing charges up to a limit of $2,500.

Both companies emphasize that their refinancings will be limited strictly to customers who have paid their mortgages on time — people who haven’t been late by 30 days or during the most recent 12 months.

One major area of difference between Fannie and Freddie involves where you obtain your new replacement loan. Freddie requires borrowers to apply to their existing lender or servicer for rate quotes and terms. Fannie, by contrast, allows borrowers to contact any of its 30,000 approved servicing and lending partners nationwide for quotes.

Fannie spokesman Brian Faith said "being able to shop their refi business can help [borrowers] reduce rates and terms." Freddie Mac’s German said his company is keeping refis with the current lender or servicer because that will cut down on time and costs — "a simpler process with no re-underwriting for most borrowers." The current servicer has the detailed files on the existing mortgage, knows the customers, and is in the best position to offer a fast and less expensive refi.

How do you know if you’re one of the millions of homeowners who might be eligible? First, you need to find out if your mortgage is owned or guaranteed by Fannie or Freddie. Your current servicer can tell you, or you can visit the companies’ special Web sites: http://www.fanniemae.com/homeaffordable or http://www.freddiemac.com/avoidforeclosure.

Myths and falsehoods relating to President Obama's budget proposal

2009-04-03T08:55:00.000-07:00

Summary: Following the release of President Obama's proposal for the fiscal year 2010 budget, media figures and outlets have promoted a number of myths and falsehoods related to the proposal.

Following the release of President Obama's proposal for the fiscal year 2010 budget, media figures and outlets have promoted a number of myths and falsehoods about the proposal. These myths and falsehoods include the suggestion that Obama's proposal would increase taxes on a large percentage of small businesses and the suggestion that using reconciliation to pass major policy goals would represent an unusual or unprecedented tactic. Media have also engaged in a pattern of criticizing Obama for addressing heath care in the budget or elsewhere, given the size of the current and projected U.S. federal debt, without addressing the president's response that health-care reform is essential to the long-term economic and fiscal health of the country.

article continues here...

Reducing Preventable Mortgage Foreclosures - recent speech by Ben Bernanke

2009-04-01T07:29:00.000-07:00

Speech

Chairman Ben S. Bernanke

At the Independent Community Bankers of America Annual Convention, Orlando, Florida

March 4, 2008

Reducing Preventable Mortgage Foreclosures

Over the past year and a half, mortgage delinquencies have increased sharply, especially among riskier loans. This development has triggered a substantial and broad-based reassessment of risk in financial markets, and it has exacerbated the contraction in the housing sector. In my remarks today, I will discuss the causes of the distress in the mortgage sector and then turn to the key question of what can be done in this environment to reduce preventable foreclosures.

Although I am aware, as you are, that community banks originated few subprime mortgages, community bankers are keenly interested in these issues; foreclosures not only create personal and financial distress for individual homeowners but also can significantly hurt neighborhoods where foreclosures cluster. Efforts by both government and private-sector entities to reduce unnecessary foreclosures are helping, but more can, and should, be done. Community bankers are well positioned to contribute to these efforts, given the strong relationships you have built with your customers and your communities.

continued here...

Homeowner Affordability and Stability Plan

2009-03-29T08:32:00.000-07:00

The President’s strategy for economic recovery is a stool with several legs, as he’s said, and one of them is solving the foreclosure crisis.

"We must stem the spread of foreclosures and falling home values for all Americans, and do everything we can to help responsible homeowners stay in their homes," he said yesterday as he signed the American Recovery and Reinvestment Act into law.

Though communities across the country have been affected by the crisis, Arizona has been hit particularly hard -- in 2008, only two states had more foreclosures.

And President Obama is there today, in Phoenix, to unveil his "Homeowner Affordability and Stability Plan," which will help bring relief to homeowners and bring some order to the housing market.

The President will talk more about his plan a little later today. In the meantime, we’re sure you have a lot of questions, like, Am I eligible for assistance? Might I be able to modify my loan? When do I apply? We've put together an example sheet that will show you what options might be available to you, depending on the circumstances of your mortgage, as well as answers to some common questions (follow link above).

Chicago renters do not have to fear about being evicted from their apartments because of landlords going through foreclosure

2008-10-08T22:03:00.000-07:00

CHICAGO, Illinois (CNN) -- Sheriff Thomas J. Dart said Wednesday 10-08-08 he is suspending foreclosure evictions in Cook County, which had been on track to reach a record number of evictions, many because of mortgage foreclosures.

He said many of the evictions involve renters who are paying their rent on time but are being thrown out because the landlord has fallen behind on mortgage payments.

Mortgage companies are supposed to identify a building's occupants before asking for an eviction, but sheriff's deputies routinely find that the mortgage companies have not done so, he said.

"These mortgage companies only see pieces of paper, not people, and don't care who's in the building," Dart said. "They simply want their money and don't care who gets hurt along the way.

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In 1999, Cook County had 12,935 mortgage foreclosure cases; in 2006, 18,916 cases were filed and last year, 32,269 were filed. This year's total is expected to exceed 43,000.

Click here to see the original post from cnn.com

For all interested in the stats

2008-07-11T08:59:00.000-07:00

The US sub-prime mortgage crisis has lead to plunging property prices, a slowdown in the US economy, and billions in losses by banks. It stems from a fundamental change in the way mortgages are funded.

click for more details

High Oil Prices Lead To Improving Real Estate Markets?

2008-06-24T07:07:00.000-07:00

http://www.freerealestatetraining.com/59/high-oil-prices/

I have a theory: High Oil Prices will probably ultimately lead to improvement in the real estate markets.

Here’s why:

High oil prices have led to price inflation, particularly in foods and basic goods. And it appears that the Federal Reserve will soon raise interest rates to combat the growing threat of inflation....

The 80/20 Rule Of Foreclosures in America (January 2008)

2008-02-28T08:20:00.001-08:00

RealtyTrac released foreclosure data for January 2008 and its report includes a nugget about real estate repossessions. The full-size version is easier on the eyes.

Breaking out the data state-by-state, we can see that the Pareto Principle holds: 80 percent of the bank repossessions last month came from 20 percent of the states in the union.

read the complete post

Changing Mortgage Guidelines Presented in Stick Figures

2008-02-28T08:15:00.001-08:00

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By: Dan Green of The Mortgage Reports

foreclosure filings jumped 57% over last year's numbers

2008-02-26T10:26:00.000-08:00

January foreclosure filings jumped 57% over last year's numbers and they were 8% higher than the December numbers, according to the Wall Street Journal this morning [subscription required]. There were 233,001 foreclosures filed in January, compared to 148,425 last January and 215,749 in December, the Journal reported based on RealtyTrac data.

...

by Lita Epstein

Short Sales, REO and Bank Owned

2008-02-20T06:48:00.000-08:00

I just completed a quick keyword search within the MLS for listings that are labled with these terms. What I found is that no matter the neighborhood, you will find these types of properties and distressed sellers. I found a brick single family homes in North Center, condos along the lake front and three flats all over the City. If you are struggling to pay off your mortgage and have little to no equity, this is definitely an option for you. Feel free to contact me if you wish to pursue doing a short sale.

For all of you who do not know what a short sale is click this link here: short sale

2008-02-15T07:52:00.000-08:00

Why Mortgage Rates Don't Look Like They're Coming Back Down Any Time Soon

Posted on February 15, 2008
Filed under On Inflation

If you're shopping for mortgages right now, or are in the process of buying a home, this week was not your buddy.

In early-January -- right up until the surprise Fed Funds Rate cut of 0.750% on January 22 -- mortgage rates were the lowest that they'd been in three years.

Market participants were fearful of an economic recession and mortgage rates moved lower with each added ounce of recessionary conviction.

Since the surprise cut, though, and with each passing week, those fears are giving way to economic hope and recovery.

As the fear subsides, the recession-fueled drop in rates we saw in early-2008 is getting smaller and smaller in the economic rearview mirror.

Here's a brief synopsis of what drove rates higher this week:

The economic stimulus package passes
A Federal Reserve president says recession won't happen
The World's most respected investor implied that the mortgage market is not so bad

click the title above to read the full article or just click here.

2008-02-07T14:51:00.000-08:00

Ooh I like this article. 4 good options for savvy homeowners in trouble. Something I can certainly help you with!

Homeowners—Avoid Foreclosure by Thinking Like Investors

February 1st, 2008

Foreclosure news has become an all too common headline. This week’s news cycle about foreclosure activity increasing 75% in 2007 was just the latest in a continuous stream of bad news for some homeowners. While we write principally for the real estate investor here on TWA, we are joining a group of our personal finance cohorts writing en masse this week about homeownership, financing, and other challenges facing homeowners (see below). For our part, we want to offer some suggestions to homeowners facing difficulties paying their mortgage or selling their home in this down market....

read more about this avoiding foreclosure article by clicking here

Buyers: Should you wait for the market bottom?

2008-02-07T14:06:00.000-08:00

The housing market will continue its downward spiral, forecasts say, and that means opportunities for buyers. But waiting for the market bottom may not be the smartest strategy. Here are 5 reasons to buy now -- and 5 reasons you may want to wait.

By Melinda Fulmer, MSN Real Estate

The latest housing headlines are far from encouraging: Foreclosures are up, home prices are down and new-home sales are at record lows. All this dismal news has many buyers sitting on the sidelines, afraid to make a move. But, economists say, waiting for the bottom may not be the smartest strategy.

Great article which I think gives investors all the encouragement in the world to invest now, while at the same time warning people not to buy now and get in over your head if you fit certain criteria. read more by clicking here

The New York Times archives

2008-02-05T07:54:00.000-08:00

ilFLS.com Releases Official 2007 Chicagoland Foreclosure Statistics

2008-02-05T07:31:00.000-08:00

ilFLS.com released its official count of Chicago area Illinois foreclosures for 2007 showing some record and rising numbers for Cook County and the collar counties of Dupage, Kane, Kendall, Lake, McHenry, Will and Winnebago Counties.

See Chart Below:

For more detailed statistics or to search the most current Chicagoland Foreclosures, auctions and REOs visit www.ilFLS.com.

Stop foreclosure in Chicago

2008-01-25T16:15:00.000-08:00

I am hoping to hear from people in need of financial help, as well as from others in the industry who have been successful in helping people either get funding to pay off their debts, or to resolve foreclosure in whatever means possible.

Please feel to visit my website
HomeSolutionsChicago.com/