Tag Archives: mortgage payments

How A HARP Loan Can Help You

I recently did a Harp loan refinance for a client of mine.  First off let me say she was already refinancing with a bank in town and after 6 months of working with that bank and after paying for the appraisal she was told that they could not do the refinance.   The loan was a little difficult but not impossible and it did require some extra work on my part.  Not only was I able to do the loan, and get the financing for her but I was able to request a an appraisal waiver so she did not have to pay for another appraisal.   In the end her mortgage payment went from $1,500.00 to $1,150.00.  Now to make things clear she was upside down in her mortgage.  Meaning she owed more on her mortgage than what her house was worth.

The family basically got a raise in their household income by doing nothing other than refinancing their home and taking advantage of the HARP loan program.  It was that simple.  The HARP loan program was just recently extended again till 2015.  What the program does it allows homeowner that are upside on their homes to refinance and lower their mortgage payments by refinancing to the lower interest rates of today.   Now there are a few conditions to this loan in order to qualify.

1)      The loan has to be owned by Freddie Mac or Fannie Mae purchased by them no later than May 31, 2009.

2)      You must be current on your loan and have had no lates on your loan within the last 6 months.

3)      You still have to qualify for the new loan based off your credit and income.

 

The most important thing to remember about the HARP loan is that even if your upside on mortgage and you owe more than what your home is worth you can still possibly refinance your home to take advantage of today’s lower interest rates.

Any questions just shoot me an email and I can see if your home qualifies as well as what is possible.

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Buying A House After A Foreclosure

Just about everyone at this time has been touched by the mortgage collapse and it would be hard to find anybody which did not know somebody which had to go through a foreclosure or a short sale on their house.You may have recieved something either in the mail or left on your door stating how its better to do a short sale instead of a foreclosure .
It is very possible to get a loan right after your short sale if your bank allowed you to do a short sale without missing any payments. Getting the approval on the short sale sometimes can be kind of tricky, usually the bank wants you to not make the payment before they will even consider allowing you to do a short sale.
If you did miss mortgage payments in doing a short sale you will have to wait at least 3 years before you can get an FHA loan, now thats 3 years from the date of the short sale not from the date you started to fall behind.  Sometimes losing your home through a foreclosure or a short sale does not make a difference in regards to how fast you can buy a home again if you are going through a FHA loan although it will in a conventional you will have to wait 7 years if you were foreclosed on.   So after those 3 years expire you can put down payment on a home using an FHA loan with merely 3.5% like everyone else trying to get a home loan.
When looking at other loans that are not FHA loans there are some differences. loan, and getting a regular loan.  Currently Freddie Mac and Fannnie Mae are the two biggest investors at this time.  These two big govt. sponsored corporations are buying the majority of the loans that the banks are doing.From the date of closing your short sale your waiting period is only 2 years to get another home loan.  But please keep in mind if you are on another loan whether it is investment property or you co-signed on it, there can be no mortgage lates within the 12 months of the application.  That is a big difference when it comes to getting back into the market.  Credit is also going to be a determing factor.

Homes are much less now than they were 3-5 years ago and more than likely there will not be any dramatic price increases in the next 2-3 years.   In closing if you find yourself in a position of possibly having to do a short sale it could actually be a blessing in disguise.  If you are struggling to make those payments on a house that is only worth its value in today’s market. 

Focus on rebuilding your credit and saving money as much as you can during the short sale process.  Some short sales can last as long as a year, so that is an entire of not making any mortgage payments.  So save, save, save and you could possibly have another home just as nice as the home you had to walk away from and with only have the mortgage payment.

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If You Stop Making Payments On Your Home

So what happens if you stop paying on your mortgage home loan.  This is a pretty basic outline of what happens whether you are in the Santa Maria real estate area or not.

So if you get to the point that making your mortgage payments on your home is more than you can do before you completely stop paying first thing is try calling your mortgage company.  You may want to see if you can get a loan modification on your loan.  Just be careful on not getting scammed on trying to get loan modification and not getting ripped off.  Banks have gotten a little bit easier to deal with but are still a challenge when trying to get a loan modification.  But when it comes to either losing your home or getting a loan modification what do you have to lose in trying?

But the question is what if you just know you will not qualify for a loan modification because you don’t have a job.  Because regardless of what you have heard you have to show proof of income to get a loan modification.   Some lenders will offer you a forbearance which is usually a temporary payment plan but it is not a load modification.  But it can buy you some time to avoid foreclosure.  They usually don’t even ask for any proof of income but at the same time it is temporary and if you can get them to reduce your payment to where you can afford it for the next 3 to 6 months.  You might be able to avoid foreclosure all together.  Keeping your home off the market and joining the ranks with many other home owners just remember you are not alone, if it comes to this.

If the lender is not willing to work with you then it will lead to them having to file a notice of default on you (NOD) on your home.  With county recorders office.  Usually this happens 3 months after you have not paid your mortgage payment.  But things have changed with so many homes going into the foreclosure process it many even be 6 months before they even file a NOD on you.  Once the NOD is filed it’s the start of the foreclosure process.

Now you have to remember these are not normal times we are currently living in and time frames in today’s real estate market are taking longer than normal.  If another 3 months passes.   Then this is where trustee comes in to play and files a notice of sale.  This is where they auction your home off at the county court house. The notice of sale is published locally in a local paper with your name and address and the amount of the note or mortgage and the date of the trustee sale.  All the embarrassing and pertinent information needed.  It will come out at least once a week for next three weeks.

 

Now this is still your redemption period if you can come up with all payments owed and fees etc etc.  Now once the home goes to the auction block anyone can buy it at the highest bidder above what the minimum bid has been established at the auction.  Sometimes the minimum bid is what is owed on the home and the home is not worth the loan amount anymore.  And if no one bids on the that is when it just goes back to the bank since no one is going to pay  for a home for more than what it is worth.  Some times the minimum bid is actually less than what is owed and it can even be less that the actual value of the home giving the buyer a sweet and profitable deal.  But the catch is that it must be in CASH at the spot usually MUST HAVE CASHIERS CHECKS IN THE AMOUNTS OF $10,000.00.  at least in the state of California.  You might want to check how your state processes buying a home at the foreclosure auction.  Also keep in mind any issues or problems with the home become your problem.  There is no disclosures at the auction house.  There is no getting a loan or thinking about it, this is a do it now, or move on situation.  So as you can tell its not for everyone and who ever the buyer is also accepts any issues that the property has so if its your home I am sure you know what issues the house may have if not then I hope your did your homework.

For A FREE List Of Foreclosures & Pre Foreclosures On The Central Coast Click HERE

If you have any questions about buying or selling home as well as getting loan, I have been helping my clients for the last 15 years on the Central Coast, take a look at some of the Santa Maria homes for sale.  And Give me a call 805-448-7101 , DRE 01321588

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Important Disclaimer: Questions and answers provided on this website and by Gene Perez is to be considered general information, and is not intended to substitute for informed professional financial, tax, legal, investment, accounting, or other professional advice.

Gene Perez is Licensed Real Estate Broker for Valley Hills Realty and a mortgage broker for Greater Mortgage Solutions.

This blog and its content is copyright of Gene Perez 2010. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following: you may print or download to a local hard disk extracts for your personal and non-commercial use only. You may copy the content to individual third parties for their personal use, but only if you acknowledge Gene Perez as the source of the material You may not, except with our express written permission, distribute or commercially exploit the content. Nor may you transmit it or store it in any other website or other form of electronic retrieval system without obtaining Gene Perez’s

 

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