Archive for Mortgage Modification
Mortgage Principal Balance Reductions..Fannie and Freddie to be Abolished!
Seattle / Tacoma and the Greater Puget Sound Area get ready for possible changes mortgage changes
Mortgage write down are being discussed more seriously. This means that if you are upside down on your mortgage, as many Seattle home owners are and have tried the modification route to no avail there might still be on last gasp effort available to you. Reduction in mortgage principal is looming on the horizon. (don’t miss the video below)
The real tragedy is for those of you who have actually lost their homes through bank intransigence during the mortgage modification process. The good news is that reform of ill conceived programs may be upon us, the bad news is that the horse has been out of the barn for a three years.
A summary of these major events affecting Seattle home owners follows:
- Fannie Mae and Freddie Mac are on a path of destruction. Many are calling for the GSE’s to be abolished! Well, abolished is certainly a strong word. But changes are in the offing.
- NOW, the GSE’s are providing 75% of all new mortgages. Which simply means that they have been the dumping ground for banks. Somebody had to be, how about you and I!
- There are three proposed options: Nationalization of the GSEs (that’s right you would now own them), Improved GSE structure or turn them over to the private sector (been there, done that).
- Combined with FHA Fannie and Freddie ARE the mortgage market. Private banks are not lending…no GSE’s….no mortgages.
- This is astounding…112 BILLION that has been spent..that will never be paid back…and they are expecting another 112 BILLION in upcoming losses! (anyone out there still think we are near bottom?)
- Principal mortgage writedowns are gaining momentum…10% off all mortgages 25% upside down…and 25% of all mortgages 10% upside down. In the US roughly HALF of all homes are owned…no mortgage. Of the other half…35% are now upside down.
- Let’s face it. Something needs to be done. Housing has been a government priority, just poorly implemented. The end of government subsidies (with the privatization of FNMA/ Freddie) meant that homeowners would have to compete with corporate America for funds. This meant that the game was afoot, greed could prevail and bring on the current calamity.
Seattle distressed homeowners want to know – Where’s the help?
The Federal Loan Modification Program-US Treasury Department
As a Certified Short Sale Specialist in the Seattle real estate market the current horror we are all living through has been in the works for a number of years. Seattle homeowners came into the irrational exuberance rather late in the game and therefore our prices didn’t rise as rapidly before the collapse hit homes in my market of King and Pierce counties.
This is about the good intentions of a program that went nowhere. But more on that later.
If you might be a distressed homeowner thinking about a Short Sale, Contact Us.
Hey, I have been working with real estate, providing mortgages to homeowners statewide and investing in Seattle real estate for over 30 years. I enjoy talking about our local market, how we got here and especially would enjoy your comments or questions. We learn from the interplay of ideas and comments, so play with me!
This begins a series of blogs designed to educate and update Seattle- Tacoma distressed home owners on what government programs are available and how those programs are faring, rather how Americas distressed homeowners are faring under these guidelines.
The below video explains the details of the Federal Loan Modification Program implemented March 4 2009 by the US Treasury. If you would rather see a good written explanation try this US News article “Obama’s Loan Modification Plan: 7 Things You Need to Know“.
More to come.
RealtyAndAMortgage FREE Credit Newsletter, Informative Video below
Your credit has been severely impacted!
Have you noticed? This is serious business. In the past we might talk about credit and get a “Ho Hum”.
- Have you checked your credit score lately?
- Do you know what credit score you now need in order to buy a home?
- A car? Something you have been waiting to buy?
- Credit cards interest rates looking frightening?
Well it may be time to become a bit of a student of credit issues. Forewarned is forearmed.
Check out the below video and then sign up for our FREE newsletter from the experts.
Sign up for our FREE Credit Newsletter
As a financial professional I have watched as credit scores have emerged as one of the single most important factors in determining a person’s ability to get the best value from every financial commitment they make.
- Everyone knows that a strong credit score is the key to a favorable home loan or car loan, but did you know that insurance companies now pull your score to determine the type of policy to offer you?
- Did you know that prospective employers may very well use your credit score as a deciding factor a factor for whether or not you will be offered a job?
The decision-makers who have the power to positively impact your life and your finances all use your credit score as the main decision-making tool.
- As a result, your understanding of the makeup of your credit score and the factors that impact that score is crucial.
- In response to the increasing weight the credit score carries, I have elected to educate myself on the subject of the credit score and methods for its improvement. In doing so, I will become a credit specialist who will provide you all of the important information you need to understand your credit score and how you can improve it.
- Additionally, I have done extensive legwork to get access to the most current and accurate credit improvement information available today.
Beginning the first of next month, I will send you the first of a monthly (or bi-monthly, quarterly, etc.) newsletter that focuses on a specific theme regarding credit. Some of the aspects I will cover in the newsletters include:
- what makes up the credit score,
- how spending affects credit,
- preventing identity theft,
- how to recover from a mortgage or financial crisis,
- and most important how to improve and maintain strong credit reports and scores.
Each issue of the newsletter will be packed with tips, advice and the primary steps you can take to protect your credit.
I am looking forward to helping you learn more about the components that make up your credit report and how you can improve and maintain the best possible credit score to realize your financial dreams.
Seattle home owners Homes Affordable Modification resources
Seattle – Tacoma home owners want to know…
As a Seattle area short sale specialist I have helped families overcome the realization that a mortgage modification really wasn’t going to happen. When that realization finally hits home, time turns out to be the unexpected enemy to avoiding foreclosure. You need time in order to get your home sold. That is something to keep in mind while you do everything that you can in order to stay in your home.
Don’t let time use you, you use time.
These are difficult times for many homeowners in the Greater Seattle area. Of course most of us want to continue living in our family homes. However we are uncertain where to turn to for good advice and then, interestingly, what is the reality of that advice. Is there really hope, or just blah, blah, blah? Or is your reality a Short Sale? Foreclosure?
Riding in on the White Horse comes the Obama administration with the Homes Affordable Modification (HAMP) program which will allow many Seattle area homeowners to work out a modification with cooperating banks. How well this is working will be the subject of future blogs.
The first steps toward mortgage modification would be to determine if you even qualify for the HAMP program, would be to see who owns your mortgage (your investor). Then look at the guidelines to determine if you actually do qualify.
FannieMae-insured loans / FreddieMac-insured loans or your lender owns the loan
In order to know what your options are you need to know who owns your mortgage. Your mortgage may be owned by the Freddie/ Fannie companies or by individual banks. If your home mortgage is owned by Freddie/Fannie you are going to have to qualify for their programs, the HAMP guidelines are very specific as to who qualifies.
If you can’t find your mortgage at either of the sites below, your home mortgage is owned by your lender (IE. Bank of America, Wells Fargo, etc.). Your loan servicer’s website is the place to begin your quest for a mortgage modification. You will be able to find a link which states what the bank needs in order to get your modification started. It is a lot like applying for a mortgage, just a few more requirements.
Whether Fannie/ Freddie or bank owned you will be dealing with the same type of people over the phone and expect it to be the most irritating experience you could imagine.
FannieMae-insured loans
Does FNMA own my mortgage? Check here.
Am I eligible for a Homes Affordable Modification? Answer these five questions:
Modification Evaluator for Home Affordable Modification
# HomeSaver Advance program: a HomeSaver Advance™ (HSA) is an unsecured personal loan designed to help eligible borrowers cure their first lien mortgage loan delinquencies.
FannieMae Home Affordable Modification Program (HAMP) Resources
# Making Home Affordable program
# Home Affordable Refinance program
FreddieMac-insured loans
Check to see if FreddieMac owns your loan
# Home Affordable Refinance program: Are you current on your mortgage payments? Do you currently owe more than your home is worth? You may be able to refinance to a lower or more stable rate through a Home Affordable Refinance, part of the federal Making Home Affordable program.
# Home Affordable Modification program: Are you behind on your mortgage payments? Current, but about to default on your payment as a result of a recent hardship? In the foreclosure process? You may be able to modify your loan to a lower rate through the Home Affordable Modification Program.
Contact us today for a free consultation
