Financially distressed homeowners with Freddie Mac mortgages will have a new option for loan modifications beginning next month.
The new option, called a Standard Modification, is designed for borrowers who are ineligible for a Home Affordable Modification Program (HAMP) loan modification or have previously defaulted on a HAMP or other loan mod. For those who are approved, the program reduces a borrower’s mortgage principle and monthly payment by at least 10 percent each, thereby making the payments more affordable.
To qualify, homeowners must be at least 60 days past due on their mortgage, that is, having missed at least two monthly payments. Those who are not at least 60 days past due can qualify by proving they are in imminent danger of default, through demonstrating an eligible hardship and providing verification of income.
5 percent interest, 40 year term
Mortgages that are modified will have their interest rates set to 5 percent and the amortization period (time required to pay off the mortgage) extended to 40 years from the time of the modification. Lenders approving such modification will receive cash incentives of up to $1,600 per homeowner approved.
Borrowers approved for the program must undergo a three-month trial period during which they must keep up with their new payment schedule before the loan modification is finalized and made permanent, similar to HAMP. Lenders will have incentives to encourage them to finalize borrower’s status within two months of the end of the trial period.
Trial mods may begin Oct. 1
Lenders may begin trial modifications for approved homeowners under the program as soon as Oct. 1, 2011. As of Jan. 1, 2011, all borrowers seeking a loan modification of any type on a Freddie Mac-supported mortgage must be evaluated for eligibility under the program.
The new Standard Modification replaces an existing type of Freddie Mac loan modification called a Debt Coverage Ratio, which now is being referred to as a Classic Modification. The government’s HAMP loan modification will continue to be available as well
–Information By Kara Johnson Banking and Financing
Effective October 1, 2011 the maximum loan amounts for an FHA loan will be reduced to. Loan amounts will be based on the county. for Maricopa County, the maximum will be reduced from #346,250 to $271,050. Most of the counties in California will be affected as well. Any loans that have been originated under the current guidelines will need to be funded by mid September.
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Banner Thunderbird Medical ad the Southwest Prostate Cancer foundation are sponsoring a Free Prostate Cancer Screening. The provided services will be as follow…Prostate Specific Antigens or blood test and a Digital Rectal Exam..Both are necessary to best determine the health of the prostate.
Banner Thunderbird Medical
5555 W Thunderbird Rd
Glendale, Az 85306
Date: Sept 24th, 2011
8Am to Noon
Wild West Mustang Club will be in full force…come see a great display of mustangs!
Please email email@example.com to reserve and appointment or you may call 602-547-3806 as services will be provided by appointment only.
Many homeowners become a bit concerned about moving forward with a decision of whether or not to short sale or foreclose based on their desire to purchase a home in the future. Below are the time lines given for FHA, VA and Conventional Loans after a short sale and foreclosure. If you have an FHA and you foreclose your wait time is 3 years; while a deed in lieu is 3 years and a short sale is 3 years (if you miss no payments during your short sale there are no seasoning requirements); bankruptcy is 2 years. For Va you must wait 2 years on a foreclosure, deed in lieu, short sale and bankruptcy. Conventional conforming loans (fanni mae and fhlmc) will require 7 years on a foreclosure, 4 years for a deed-in-lieu (may be 7 years if not primary residence..also based on your loan to value), 3 years for short sale (may be up to 7 years based on loan to value) and bankruptcy is 4 years. Conventional non-conforming loans (Jumbo) requires a wait period of 7 years for foreclosure, 7 years for deed-in-lieu, 7 years for a short sale and 7 years for a bankruptcy. Other credit factors may be considered when qualifying.
There is light at the end of a foreclosure, short sale, BK and deed- in-lieu…