Behind on monthly payments?
What information and options are available?
How could your “credit scores” be impacted?
The “Homeownership Preservation Foundation” is an excellent FREE resource. Their website www.995hope.org offers a diversified amount information and solutions for your alternatives. Whether you’re in your in Placerville or any part of the USA, this will help. Online counseling, videos and other educational resources cover about any scenario.
Contact your lender to see what kind of advise or assistance they may offer. Many are beginning to have customer service or mediation departments. This will not be a quick or easy process so, be patient. Keep notes, names and phone numbers.
Professional counselors can be helpful but check their experience and expertise. Be cautious, there are a lot of scammers out their, so do not pay up front fees.
Here’s the likely options you may consider and how will your “credit scores” be affected:
“Loan Modifications” depending on the exact conditions of changes may not have much impact. This is an excellent choice if you want to keep your home.
“Short sales” according to research, can reduce your credit scores by as much as 130 points.
“Foreclosure” can cause a fall of 200 points or more. Negative marks on credit bureau files may last 5 to 7 years.
“Bankruptcy filings” on the average drop you scores around 300 points and reflect on credit bureau files for 10 years.
Cap and Trade passed the House. Now the Senate is working on their version of the Waxman-Markey bill. It appears the final result may include a new “National Building Code”. Homes would have to undergo and pass an “environmental inspection” when sold.
Mandated compliance of these new energy efficiency standards would make selling more expensive and difficult. Older homes and fixer uppers could represent cost prohibitive situations for sellers. Buyers would lose an opportunity to remodel, repair or upgrade with their options and desires.
Obvious other ramifications from this will only further delay economic recovery. Other government regulations forced on home sales and the loan industry this year, have already had negative impacts. The “American Dream of Home Ownership” is only being contradicted by much of this legislation.
“STREAMLINE REFINANCING” rules for FHA borrowers are changing as of 11/18/09. FHA is also proposing to drastically increase banks and other lenders capital reserve requirements. (Rational is, “the agency’s cash reserves will drop below the minimum level set by Congress”.) These actions are likely to put more banks and lenders out of business.
“Conventional Loan” requirements relating to Fannie Mae and Freddie Mac mandated this year have caused similar complications for home sales. For example, the new (HVCC) Home Value Code of Conduct, has dictated appraisal changes and new recession requirements. This has caused additional cost, inaccurate appraisals and typically 60 day time frames for transactions to close, instead of about 30 days.
Anyone thinking about buying or selling better start the process ASAP! Remember, the $8,000.00 tax credit ends 11/30/09. Anticipated higher loan interested rates would reduce qualifying opportunities. Plus, who knows of what government regulations or mandates will pop up next?
Freddie Mac just released results of its Primary Mortgage survey. It shows mortgage rates remained historically low over the past two weeks, keeping housing very affordable. Nationwide, 30-year fixed rate mortgages averaged a little over 5 percent. 15-year fixed-rate mortgages averaged around 4.50 percent.
The Mortgage Bankers Association reports mortgage applications increased 17 percent, led by a 23 percent jump in refinancing request, just in the past week. Nearly three out of five applications were for refinancing current loans.
Buyers seem to be realizing, now is a great opportunity to benefit from the great prices and programs. Families can obtain free information to assist in seeing what may be available for their “Dream of Home Ownership”. Lenders will assist you with in getting loan guidelines, qualification requirements, etc! Realtors, can then research the entire market based on your guidelines.
Get a couple of opinions and evaluate their attitude of assistance. Also, ask about their qualifications and experience. In our area of Placerville / El Dorado County, California like many communities, local professionals will work together to assist.
Home sales are increasing nationwide now about 7% per month. Buyers are taking advantage of low prices and great low rates on loans. Plus, the current $8,000. tax credit for first time home buyers which ends November 30, 2009.
California’s median price of an existing singly-family home increased about 4% last month. Different regions varied from declines of around 10% to around 40% increases in our area of Placerville / El Dorado County, California.
“Buyers beware” and don’t be procrastinating. Explore and get the facts on what are your specific market opportunities. Interest rates are expected to increase in a few months and home prices may be leveling out. Various other factors could influence buyers affordability and qualifications. So, now is the time to see how you can benefit!
