Archive for the “General” Category

posts which aren’t easily categorized into any of the ones available

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So the Chief Economist at NAR (National Assoc of Realtors) predicts housing sales will increase 4% next yr (2012).  Moody’s Analytics (Celia Chen) is more ambitious, thinking a 20%+  jump in 2012. But the much-desired housing recovery will be strangled by one thing above all . . .lack of consumer (homeowner) confidence in that Recovery. You see if house prices soften in the first two quarters of 2012 as expected by many, a good chunk of homeowners will react to negative equity by “strategically defaulting”. It’s a fact that being underwater is a common trigger which causes people to bail. The default and resulting number of foreclosures kicks off a cycle of events which repeats the drop in house prices.  Default leads to foreclosures . . leads to drop in prices . . .leads to negative equity . . leads right back to more default.

If somehow Consumer confidence and faith in long term appreciation in value could hold its ground, we’d see an overall housing recovery quicker and stronger.

Only time will tell  . . .Strategic Default ,negative equity


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Chapter 13 Bankruptcy FHA Home Purchase TheZerodownloan.comit’s a little known fact amongst Homebuyers, Renters, Realtors and even Loan Officers that both FHA and VA allow a Borrower to purchase a home after they’ve made 12 timely payments on a Chapter 13 BK.
Wait! What? Yes you read that right.
Why is this important? It’s important because while grappling with many unpaid collections, charge off’s and judgements, a Borrower’s credit score remains low and unable to revive. This keeps them from FHA financing.
Bringing all that unpaid debt, all the dirty laundry so to speak, under the governance of the Bankruptcy Trustee forces the credit bureaus to begin reporting each of those negative accounts as “INCLUDED IN BANKRUPTCY”.
The magic is this: When a trade/account is reported in this way, the FICO (Credit) Scoring model treats the accounts as “non-rated”.
Their negative effect is diminished!
Now a smart homebuyer would couple this with obtaining maybe 2 or 3 **secured** credit cards which are virtually guaranteed, pay on them for 12 months alongside the Bankruptcy Trustee payments and . . . voila! After 12 months of filing Chapter 13 the Borrower has a better score *AND* some re-established credit.
It’s important if using this maneuver to not leave any unpaid collection/charge off outside the BK filing.
For more details on purchasing a home while in Chapter 13 Bankruptcy, contact us at 877-332-9703 or through the links on this blog site.

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The Federal Housing Finance Agency, together with Fannie Mae and Freddie Mac, have set up a bunch of updates to the HARP (Home Affordable Refinance Program).

The program has existed to help people who were in a position of negative equity but capped homeowners at 125% Loan-to-value. But now Homeowners can refinance without any limit on how upside down they are (i.e. limitless Loan-to-Value). The loans to be refinanced must have been sold to Fannie or Freddie on or before May 31, 2009 with current loan-to-value (LTV) ratios above 80 percent.

Here’s a summary of the most significant changes to the HARP program:

• Elimination of certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;

• Removal of the current 125 percent LTV cap/limit for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;

• Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac;

• Eliminating the need for a new property appraisal where there is a reliable A VM (automated valuation model) estimate provided by the Enterprises; and

• Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Fannie or Freddie on or before May 31, 2009.

To see if your home loan is eligible, go grab the correct address at the Post office’s web site (to make sure you use the standardized address) then look it up at the Fannie Mae and Freddie Mac ‘Look Up’ addresses here.   Fannie Mae Look Up Site or Freddie Mac Look Up Site

To download the full Federal document, click here


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Write your Congressman/Congresswoman and push them to pass H.R. Bill 8026 known as “The Medical Debt Responsibility Act (2011″. Below is a Summary of what the Bill means, straight from Congress.
Basically, any medical bill less than $2500 which is satisfied or paid CANNOT BE REPORTED ON YOUR CREDIT REPORT! Could you imagine what this would do to the FICO scores of millions of people? With FHA financing now available for scores as low as 530 to 560, could you imagine how many folks would become eligible for buying a home?
This Bill potentially has a sensational effect on homebuying if we can get it to Pass.
HR Bill 8026 Medical Debt Responsibility Act 2011

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