Mortgage

Here’s How to Live in Your Home Without Paying

June 13th, 2008 categories: Mortgage, Real Estate Tips

SeniorTennis Do you own your own home? Are you at least 62 years young? Are costs today, interfering with the way you thought you would live out your life? There is no reason to scrimp and do without during the last half of your life.

You’ve worked hard, paid your bills and now it’s time to relax and not worry anymore. Let your house pay for you, now. Reverse Mortgage is the way to make this happen.

It is safe as long it is backed by FHA. Don’t be caught like Ed Mc Mann in your 80’s without a house or not have enough money for living the life you planned due to the high cost of fuel, food, medications and health care during your retirement.

This week I had the opportunity of speaking to Kimberly Keith who is handling the loan for one of my current home buyers in Cameron Park, CA. During our conversation, we discussed Reverse Mortgages and I asked Kimberly to be a guest author on Sacramento Real Estate Voice to bring her professional prospective on Reverse Mortgages. I hope that her article will help answer some of your questions about Reverse Mortgage. So, without further adieu, here’s Kimberly Keith.

Many people have heard about the Reverse Mortgage, however few really know how they work. The mystery and intrigue surrounding the reverse mortgage is being eliminated as many are becoming informed regarding the program and realize that a reverse mortgage can be a valuable tool to supplement fixed incomes and meet the dramatic increases in our ordinary, daily, living expenses.

Let me first try to dispel the rumors regarding the reverse mortgage. It is not true that you will no longer be on title to your home or that the bank will own your home in its entirety! The title and financial responsibility of the home, such as homeowner’s insurance and taxes, continue to be the homeowners’ responsibility.

Another vicious rumor is that you could actually owe more than the value of the home and that if you die you would be leaving a debt, not the asset of your home, to your heirs. Absolutely untrue!

The reverse mortgage is considered a “non-recourse loan”. What this means is that you will never owe more than the appraised value of the home at the point of sale or the time of a refinance.

The money from the reverse mortgage is also considered an alternative income and as such, is tax-free and will not affect regular Social Security or Medicare payments. It is always recommended that a homeowner consult their tax advisor or attorney regarding their specific situation. Payment of the reverse mortgage is deferred (not due) until the surviving spouse dies or sells the home. The money you receive from a reverse mortgage can be paid in a lump sum, monthly payment or a line of credit or a portion of all three. How you use the money is completely up to you!

The reverse mortgage requires owner occupancy so, in order to be in “violation” of this requirement one or both homeowners would have to be hospitalized or in assisted living for a complete 12 month timeframe. Additionally, if either came home for even one night, the 12 month timeframe would start again.

So, after explaining the truths regarding a reverse mortgage you may ask who is qualified for one?   If you are 62 year or older and own your own home, you may qualify! Your age at the time of your application, current interest rates, the appraised value of the home and the type of reverse mortgage that you apply for can affect the amount of money you may obtain. Generally, the older you are and the more equity in your home, the larger the reverse mortgage may be.

The process of obtaining a reverse mortgage is easy. I can review the loan program with you and would welcome the participation of another family member, and/or financial advisor, lawyer or accountant. You are required to obtain government approved, independent and free counseling to ensure that all your questions are answered. An application is then taken and the file is sent to the investor. After credit approval, your home will be appraised and together we will meet any additional underwriting conditions. Finally, after the loan is approved and the documents are drawn, we will sign loan documents. Your loan will fund and shortly thereafter you will receive the funds agreed to and in whatever manner you have decided on.

Please know that a reverse mortgage may not be right for everyone. I promise to make sure the information regarding this program is presented to you in a clear, concise manner so you can determine if a reverse mortgage will help you be more financially secure. If you would like additional information regarding this or any other loan program, please call. I look forward to speaking with you!

Kimberly Keith Mortgage Planner

kkeith@eaglehomemortgage.com

Ph: (888) 429-7714

Fax: (530) 252-1544

Thank you, Kimberly. I hope that some of the questions that you may have had about Reverse Mortgages have been addressed. If not, feel free to give Kimberly a call.

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

Other Articles That May Be of Interest:

Reverse Mortgage Helps You Stay in Your Home

Retire in Elk Grove California

Retire in Roseville

Baby Boomers in Real Estate

Active Adult Communities Around Sacramento

Authored by Gena Riede | Discussion: Comments »

Sacramento Veterans Buying Home

June 9th, 2008 categories: Home Buyer, Mortgage, Sacramento

Vetran Buying Trhough Remax Won’t be long before my Sacramento home buyers close on the house they are buying in Sacramento.

Both buyers are Veterans and getting a VA loan. We have anxiously been awaiting the VA appraisal which is tougher than an FHA loan when it comes to the condition of the house.

Many of the bank owned properties we looked at for sale just wouldn’t cut the mustard for a VA loan. They had too many repairs and the bank was selling the properties “as is.”

Luckily, we found a house being sold by home sellers in Sacramento instead of bank owned or short sale homes for sale. After having a home inspection, where several items were found needing to be replaced and or repaired, the sellers agreed to fix most of items.

Now, the wait to see what if anything the VA appraiser finds fault with that needs to be fixed or replaced. VA appraisers look for items that fall within the health and safety concern. If the appraiser finds such items, the Seller is requested to fix or repair and if the Seller does not, then the contract is null and void. Without those items fixed, there can be no loan.

Although I feel confident that there will be no health and safety items found, the home buyers and I along with the Sellers are anxiously awaiting the VA appraisers results.

If all goes well, it will be just a couple of weeks and these lucky new Sacramento home buyers who relocated from Colorado will be swimming in their own backyard pool. I see lots of good memories to be had.

Since beginning this article, the VA appraiser has completed the appraisal and found no items meeting health and safety concerns so it’s now time for underwriting to get the loan documents prepared so that my VA home buyers can move-in to their new house.

With all the men and women returning from active duty, Sacramento will be seeing more and more VA mortgage loans to in the future. It is a pleasure to help those you have helped to make us all a little bit safer in this world.

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

If you are thinking of relocating as a home buyer or simply considering selling your house, be sure to check a FREE Sacramento MLS of homes for sale.

Good Articles for Home Buyers:

When Should a First Time Home Buyer Buy a House?

First Time Homebuyers Should Take Advantage of the Buyers Market

New Home Buyer Information You Need to Read

Important Buyer Information

What Does A Realtor Do When I Want to See A House or Condo?

First Time Homebuyers Check-Off List– Part II Write an Offer

Fist Time Homebuyer’s Check-off List-Part I

Why is Buying A House Stressful?

Sellers Make Concessions

Shall I Buy A House or Rent?

What EVERY Buyer Should Know

Authored by Gena Riede | Discussion: 2 Comments »

Move Over, FHA is BACK in Town

April 24th, 2008 categories: Mortgage, Sacramento

Home Buyers, this is your lucky day! Guess whos back in town?

Before I tell you lets talk about how uncertain loans have been. Thats an understatement if there ever was one.

So many of the homes today that are in foreclosure are due to poor loans and bad spending habits by homeowners.

But, now FHA is back in town! We are seeing the return of FHA loans and for good reason.

FHA will see Real Estate back on its feet with safety for the home buyer.

There is a conforming loan rate increase. Different areas have different loan limits. Sacramento Real Estate has changed from $464,000 to $580,000. This means that you, the home buyer can finance up to $580,000 without having a jumbo loan.

And why do you want to avoid a jumbo loan? Because the interest rates are higher on a jumbo loan. This is only good until December 31, 2008.

Sacramento County, Placer County, El Dorado County and Yolo County all have the same conforming mortgage loan rate with FHA, $580,000.

The other reason FHA is doing so well is that there are lower down payment requirements. Other loan programs such as a conventional loans now require 10% down payment in order to purchase a house or condo. FHA on the other hand only requires 3% down payment.

This doesnt mean that everyone will qualify for an FHA loan. Twelve months of a good payment history is required. You need to be prequalified by a reputable Lender. It is in your best interest to meet with your Lender before ever looking at homes. Your Mortgage Lender will check your credit and verify your employment. This is the time to ask your Lender what your payment would be for the amount you qualify.

I can’t tell you how many times a new home buyer will come to me who already has a Lender but has no idea what their payments would be on any particular loan amount. This is essential. Home buyers need to know what their loan payment would be for several differnent real estate loan amounts.

If you dont feel comfortable with the loan payment each month, then ask what the payment would be for a lesser amount. You dont want to be house poor, but at the same time you want to be able to get as much house as you feel comfortable buying.

Your lender will send the qualification letter to the Realtor so that your Realtor will know which homes based on the home loan you are obtaining, you would qualify for. Once you have decided on which house to make an offer, the Lender letter will go with the purchase contract.

You are asking the Seller to take their home off the market so it is essential that you provide a letter from the Lender indicating that you are qualified for that amount of money to buy the house. Gifts for down payment and closing costs are allowed. No minimum FICO score or credit score requirements and FHA will allow a home purchase two years after bankruptcy and 3 years after a foreclosure.

There are times when through negotiations, the seller will actually pay for the home buyers 3% down payment. There are also down payment assistance programs available through Nehemiah and others.

Since many of the homes in the Sacramento region are bank owned and some in need of repair, FHA has a program that allows owner-occupied borrowers to finance up to $35,000 in the mortgage to make repairs. For a list of requirements that the property must have be sure to check out the Homeownership Center Reference Guide.

Welcome back to the FHA backed mortgage loans. Back in the day, FHA was the only loan in town to trust. Glad to see FHA returning.

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

If you are thinking of relocating as a home buyer or simply considering selling your house, be sure to check a FREE Sacramento MLS of homes for sale and condos for sale.

Other Related Articles:

When Should a First Time Home Buyer Buy A House?

First-Time Homebuyers Should Take Advantage of the Buyers Market

New Home Buyer Information You Need to Read

Affordable Neighborhood in Sacramento

Home Buyers, Do You Remember Being School?

How Much Money Do I Need To Buy A House?

Sacramento Realtor Talks To Home Buyers

Baby Steps When Buying a House

Sacramento Home Buyer-Lets Imagine

What Are the ABCs of Buying A House?

Sacramento Home Buyer Asks About Credit Score

Discrimination in California is Obvious

Move Out of the Way, Bankers

Life Saver for Sacramento Homeowners

Authored by Gena Riede | Discussion: 2 Comments »

Reverse Mortgage Helps You Stay in Your Home

April 22nd, 2008 categories: Mortgage, Real Estate, Retirement Communties

If you are at least 62 years young or older, reverse mortgage may be for you. Reverse Mortgages allow homeowners to convert the equity in their home to cash while retaining ownership and not making any house payments as long as you live in the house.

Property taxes and homeowner insurance are still the responsibility of the homeowner, to pay, though.

Hope you enjoy this little video that we can all relate to…

http://www.youtube.com/watch?v=waOMnQ_Ws90

In order to qualify for a reverse mortgage you must have paid off or have equity in your home. There are limits as to how much money can be drawn out of the equity. You can be paid in a lump sum, in monthly advances or through a line of credit. Maybe even all three.

The money you receive and agree upon can be used for daily living expenses, medical care, repairs on the house and much more.

You make no payments to a lender anymore. There is only one stipulation, you must reside in the house.

Its important to make sure that HUD backs the Reverse Mortgage. You will be referred for counseling to determine if you are eligible. Once you have completed the counseling, you will be issued a certificate as proof that you have completed counseling. This certificate must be presented to a HUD Direct Reverse Mortgage Lender.

You will be asked how or if you would like to receive payments and the Lender will provide you with the total cost of the loan, as required by the Federal Truth in Lending Act. An appraisal of your home must be done in order to determine the value and the physical condition of the property. If there are any significant repairs to be made, you will be required to have a contractor complete the repairs after the Reverse Mortgage closes.

It does cost money to sign and record all of the paperwork, which is what we call closing. However, you can opt to have those costs rolled into the reverse mortgage loan.

What happens is that your remaining loan is paid off and a new lien is placed on your property.

Each month you will receive a statement that shows what the current interest rate is and how your equity has been reduced. It is important to have a good understanding of how Reverse Mortgage works and see if its a good idea for you.

If you are interested in having a quote fill out the form at the link or speak with a HUD Direct Reverse Mortgage Specialists, by calling 1“866“326“2583.

There are plenty of Active Adult communities that are gated if that is of interest to you. Just give me a call and I can make sure to send you homes and condos for sale in retirement communities both in Sacramento, Elk Grove, Folsom, Roseville, Lincoln and El Dorado Hills.

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

Other Related Articles:

Tax Savings for Seniors

Retire in Elk Grove California

Retire in Roseville

Baby Boomers in Real Estate

Active Adult Communities Around Sacramento

Authored by Gena Riede | Discussion: 2 Comments »

Housing Bubble

April 19th, 2008 categories: Mortgage, Real Estate Tips

Housing Bubble video below shows homeowners who got themselves in deep real estate trouble. My guess is that this guy bought his home in the year 2000. Just like many homeowners he made a great deal of equity in his home and thought he could refinance.

Bad idea. Not just because it’s obvious now, it just doesn’t make good sense to rob your home’s equity unless there is a death or severe illness. As you know by the sound of your phone ringing and the junk you get in the mail everyone and their dog is trying to get you to refinance. Don’t do it even when times get good, again. One exception is if the current interest rate and terms are better than what you currently have with your loan. The key word here is TERMS are better.

Now, let’s get back to the little guy in the video who bought his house in 2000.

He says, “Gena, it appraised and then suddenly home prices fell in Sacramento.”

Here is where you need to understand the difference in home appraisals, refi appraisals and CMA’s. There is a difference between an appraisal when purchasing a home and an appraisal when refinancing a house. The big difference is that when purchasing, a Lender is taking quite a big chance on giving you a loan so they want to make sure that the house appraises for at least what the loan amount is.

However, when appraising a house or condo for a REFI, there is equity in a house or condo otherwise you wouldn’t be able to refinance. The lender isn’t taking a huge risk since part of the equity is secured and only a percentage is allowed for refinancing.

Many homeowners decided to refinance and use a great deal of equity that had built up to pay for vacations, new cars, boats and pay off credit cards.

The only trouble with that is that now the homeowner had 2 payments instead of one low payment. This is called robbing your equity.

And oh so many homeowners were quick to refinance their house or condo, assuming the real estate market would continue to rise in Sacramento County. Homes were selling for $10,000 more each week. Oops, it didnt happen and the refinance appraisals were coming in high.

Refinance appraisals are always higher than appraisals for new loans. Banks assume that you intend on living at the property and not selling. They dont think there is a lot of risk associated with refinancing. Or should I say, they didnt think there was such a big risk.

When purchasing a home, the bank sends an appraiser and the appraisal amount for the house needs to reflect the exact amount that the house would sell for just in case the new home buyer fails to pay the mortgage. As you can see, this is a bigger risk for the lender so the appraised amount will be less than a refinanced amount where there is equity.

Since a refinance appraisal includes equity already in the home, this is not as big a risk to the Lender. Hence the higher appraised value.

This all becomes a bit confusing when I meet with home sellers to determine the value of their home. Home sellers that they want to place their house in the real estate market for sale are bewildered when I tell them the value of their house. This is what we call a CMA or Comparative Market Analysis when the sellers home is compared to like homes within a one square mile radius. Sellers are usually shocked at the difference in the two appraisal amounts.

Many of the home prices in Sacramento County are down below 2003 prices with many of them bank owned and in foreclosure. The subprime loan market is responsible for many of these bank owned homes for sale. A few are a result of real estate fraud and mortgage fraud and others due to refinancing or should I say stripping the equity right out of the house.

Can’t tell you how many times I have sat at someone’s dining table to only find that the homeowner had refinanced to buy that boat, the new car or pay off credit cards and take a lovely vacation. And oh so often, very remorseful that they had fallen prey to the refinance bug.

Since the homes have declined in price and the real estate market took a dive, many of these homeowners are now losing their houses. You cant refinance something that has lost value or should I say, youve used all the value up.

Refinancing is not always the life saver that homeowners hope for. Theres a lesson somewhere in this dont use your home to pay for what you cant afford. We need to start living within our means and treat our homes with the respect that they are due.

A place to live and call home is essential in life. It’s time to learn to budget and live within our means. For all you new home buyers out there, remember to honor your home, don’t steal from it.

Other Great Articles to Read:

Discrimination in California is Obvious

Move Out of the Way Bankers

Don’t Be Duped Homeowner

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

Other Related Articles:

Missed Your House Payment?

Life Saverfor Sacramento Homeowners

The Lights Have Gone Out For Many in Foreclosure

Sacramento Real Estate is Thankful this Thanksgiving

Short Sale and Foreclosure Real Estate Tax News

The Blood Continues to Run…

Sacramento Real Estate, Prepare for the Eye of the Storm

Sacramento Real Estate Writes Letter to All Banks

Authored by Gena Riede | Discussion: 7 Comments »

Discrimination in California is Obvious

March 26th, 2008 categories: Mortgage, Real Estate

Map of Redlining Hello Sacramento Real Estate!

Take a look at the map to the left.

What do you see that might indicate a tad bit of discrimination?

Do you happen to see all the RED in California?

It seems that the companies who insure loans are doing a bit of what I call REDLINING!

This happens to be a practice that is not acceptable in Real Estate. In fact, a Reactors license can be removed for redlining and be subjected to fair housing violations.

Then why pray tell can the mortgage insurers get away with such practice? So, how did the insurers manage to get away with discriminatory practice which obviously affects home buyers as well as current homeowners?

Block Busting and Redlining are both Fair Housing Violations. District Attorney for CA, what say you? Is this a practice that we as Sacramento Californians are going to tolerate? Are Realtors the only profession that must adhere to Fair Housing rules?

Redlining: A lending policy, illegal in California, for denying real estate loans on properties in older, changing urban areas, usually with large minority populations, because of alleged higher lending risks without due consideration being given by the lending institutions to the credit worthiness of the individual loan applicant.

Blockbusting: The practice on the part of unscrupulous speculators or real estate agents of inducing panic selling of homes below market value especially by exploiting the prejudices of property owners in neighborhoods in which the racial make-up is changing or appears to be on the verge of changing. It is an actionable wrong.

Step up. Same song just a different dance. Dont allow the mortgage insurers to categorize our neighborhoods, our Countys and our State. Do you want to pay MORE on your home mortgage loan?

I wrote about Real Estate fraud back in 2006 and its now 2008. It took 2 years for the District Attorneys office in CA to identify just a handful of these criminals who reeked havoc in Real Estate. There are plenty more and now District Attorney for CA, take a good look at the map above. Look at how the insurers for mortgage loans are effecting our California home buyers. Stop this practice of discrimination on our State and our home buyers.

Act and act now. Each County has their own District Attorney. Seems like their all hoping the other one does something, hugh? If this has touched a nerve with you, then Google CA District Attorney, find your District Attorneys Office and email them this article. Hopefully, theyll right this wrong.

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

Fraud in Real Estate?

Sacramento Real Estate Fraud-Homeowners Read This

Sacramento Writes Letter to All Banks

Missed Your House Payment?

Dont Be Duped, Homeowner

Move Out of the Way, Bankers

Sacrmaento Real Estate, Prepare for the Eye of the Storm

The Blood Continues to Run

Sacramento Real Estate Voice Honored

What Sellers Need to Know About Receiving Offers

2007 Where Knowledge is Power in Real Estate

Want To Be An Investor?

Life Saver for Sacramento Homeowners

The Lights Have Gone Out For Many in Foreclosure

Authored by Gena Riede | Discussion: Comments »

Dont Be Duped, Homeowner

February 21st, 2008 categories: Foreclosure, Mortgage, Real Estate

Housing Scams are alive and preying on theHomeowner.

Unscrupulous people looking to make a buck on your back have you sign a bunch of papers, tell you to pay them rent and in return theyll make your house payments or pay off your house. And they even let you keep on living in your house.

It isnt until you receive notice from the mortgage lender that you are evicted that you realize you have been scammed. These scammers do not work for the bank, they are NOT honest or trust worthy.

These home scammers know which homeowners are having difficulty paying their house payment and they prey on your emotions during this stressful time.

Read the recent Sacramento Bee article, foreclosure rescue, home scam. This is just another kick in the you-know-what for homeowners having trouble paying their house payment.

These thieves dont wait for you to call, they actually call you first. They track late payments on loan mortgages and homeowners that may have sub-prime mortgage loans. They send out mailers and call. Unfortunately, the struggling homeowner actually thinks these people will help them.

Again, I cant emphasize more to each and every home owner who is having trouble paying their house payment CALL YOUR MORTGAGE LENDER (the person you pay or use to pay each month for your house).

Ask your mortgage lender (better known as the mortgage servicer), what solutions are available for you. Be sure to read the article Foreclosure Prevention by the Mortgage Bankers Association.

Call HUD and ask a reputable housing organization what your options are. Dont be duped by dishonest people who want to suck-up what little money you have left.

If it sounds too good to be true, IT IS!

There are also mortgage lenders calling and sending mailings to refinance. Be wary of equity-stripping scammers. Dont just put your blinders on and chose one.

Are you having trouble paying your house payment? Do you want to know what to do? Do you need to know who to call?

Below are reputable organizations where your questions can be answered.

Sacramento Neighbor Works Homeownership Center 916.452.5356
National Neighbor Works Homeownership Center (888) 995.4673
Sacramento Home Loan Counseling Center 916.646.2005
By Design Financial Solutions (800)750.2227
Sacramento Mutual Housing Association 916.453.8400
Tips for Avoiding Foreclosure and what to do (800) 569.4287

Foreclosures and Short Sales are stressful for the homeowner but you must keep your wits about you and only deal with solid reputable companies. Remember, there are Rescue Service scammers that take your money and do nothing to help you.

Be wise when seeking help, do your homework.

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

Other Articles:

Missed Your House Payment?

Sacramento Real Estate Fraud-Homeowners Read This

Sacramento Short Sales and Foreclosures

The Lights Have Gone Out For Many in Foreclosure

Short Sale and Foreclosure Real Estate Tax News

The Blood Continues to Run

Sacramento Real Estate Writes Letter to All Banks

Do You Understand Foreclosure?

What Does Short Sale Mean?

Authored by Gena Riede | Discussion: Comments »

Missed Your House Payment?

December 18th, 2007 categories: Fraud, Loan Fraud, Real Estate

Home owners who are having difficulty paying their house payments and have missed house payments need to watch this video to help protect themselves.

As soon as you start missing your house payment, predators are eagerly contacting you and promising all kinds of help. Don’t be taken in by these fools. They will have you sign lots of documents and promise that you can stay in the house and rent it back from them. Please watch the video so you are not taken advantage of again.

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Also an excellent article that you might want to share with someone you know who is having difficulty paying their house payment is Avoiding Mortgage Fraud. Be careful who you talk to.

For authorized help, call 1-800-995-HOPE and on the Internet go to Tips for Avoiding Foreclosure by the U.S. Department of Housing.

Remember, if it sounds too good to be true, IT IS! Don’t get caught up in fraud where scammers are looking for a quick buck, that take your money, your deed and leave you holding the bag.

Think smart and only deal with reputible real estate agents, the bank where you have your loan and HUD.

Life Saver for Sacramento Homeowners

December 7th, 2007 categories: Mortgage, Real Estate

Sub Prime Help Sacramento homeowners who have sub prime mortgages and are up to speed on their house payment may be given a life saver that the Bush administration is working on.

Real Estate has taken a hit with all the sub prime mortgage loans given out with teaser interest rates.

A home owner, that (means you live at the property this is not for investors) just received a life line while out drowning in the sub prime mortgage catastrophe.

It is important the homeowner has NOT missed any payments. This life line will keep the mortgage interest rate at the teaser rate and it will NOT adjust. This reprieve is for 5 years. With over 900,000 foreclosures nationwide, this comes as good news for those homeowners whose loan was ready to adjust. In order to qualify, here are the stipulations:

Have an sub-prime adjustable loan
Loan issued 2005 through July 30, 2007
Reset would have taken place between Jan 1, 2008 and July 31, 2010
Live in the house
Be current with mortgage payment
Reset of more than 10%
Credit score of less than 660 and not have risen more than 10% since original loan was given

If this seems confusing, be sure to call the hot line at 1“888“995“HOPE.

FHA may be able to help refinance those with good credit history according to the government. However, one thing it seems they missed in all this is that a homeowner cannot refinance if the house is valued for less than what they owe so Im not sure what they are smoking!

For those who are in foreclosure or have been foreclosed on, its too late for this. Also, homeowners who have missed any payments, this is not for you either.

Laws are being written so that sub-prime loans are not given so freely as they were especially to those who are not qualified for that loan program.

Much talk and opinion has been expressed about bailing out the sub-prime homeowner, some feel that government should not interfere and let the homeowner lose their home.

It would appear that the Feds think that real estate values will be on the rise and those homeowners who qualify for this 5 year reprieve will be able to refinance their homes to a fixed rate. Perhaps, a new loan program will become available within 5 years or speculators may be right that this will simply put off the inevitable and within 5 years there will be a slew of foreclosures.

If I were in a position of having a sub-prime loan and be given this 5 year life saver, I would be diligent in making my payments on time and be looking for alternative loan programs throughout the next 5 years. It is essential to hook-up with a reputable Lender during this time so that you have someone looking for the best possible loan program for you before the 5 year time limit.

Industry observers predict this proposal will spur a wave of lawsuits from the investors who bought mortgage-backed securities expecting the rates to reset and their interest payments to rise. This should be interesting to watch.

CNBC, reported that officials representing major players in the mortgage industry believe the plan would withstand any legal challenges and would help at-risk homeowners avoid defaulting on their mortgages.

This is the best holiday gift these home owners could have received breathe a sigh of relief but remember to be diligent in payment your house payment and seek new loan programs.

Happy Holidays!

Do you have an opinion about saving these homeowners from their sub prime mortgages?

Authored by | Discussion: 2 Comments »

Sacramento Real Estate is Thankful this Thanksgiving

November 22nd, 2007 categories: Mortgage, Real Estate, Sacramento

Turkey dinner1 Happy Thanksgiving! There may be some good news for those facing Foreclosure in Real Estate for the Sacramento area and all over California for that matter.

This week, Governor Schwarzenegger met with 4 of the largest loan servicers who are servicing subprime loans. The Governor asked these loan servicers to voluntarily agree to NOT adjust mortgage rates on their subprime loans which constitute 25% of their real estate loans. California rates twice the National Average in Forecosures. This is having quite an impact on our economy here in California.

The four lending loan servicers that Gov. Schwarzenegger met with are:

Countrywide Financial Corp.
GMAC Mortgage
Litton Loan Servicing
Home Eq Servicing

Sad to say that this does not come in time for many who have lost their homes. Governor Schwarzenegger had this to said, with this type of cooperation from loan servicers, we can save tens of thousands of people from being added to the foreclosure lists.

In March 2008, it was predicted that the peak of Foreclousre was to hit California due to loans adjusting to a much higher rate, but now with Gov. Schwarnenegger stepping in, this may save many of those homeowners who have a subprime loan that will be adjusting. There have been 24,000 foreclosures in California alone, so far with Stockton being #1 in Foreclosures with 1 out of 31 homes foreclosed upon and Sacramento second, with 1 out of every 48 homes foreclosed.

There are a half million Californians who have subprime loans that will jump to higher interest rates. Our Governor, Gov. Schwarnenegger is the first to step up to the plate to protect the homeowners of California.

Its important not to simply wait and do nothing. The Governor has asked, borrowers to do their part meet the lenders half way. Homeowners facing foreclosure MUST contact the bank at the very 1^st sign of a problem. This is a horrendous time for a homeowner, but you need to put aside the emotions and solve the problem. Dont just walk away, step up, call the place that you pay your loan each month and talk to them. There is help but you need to be pro-active.

Help for homeowners losing their houses has been accomplished by the Federal Deposit Insurance Corporation Chair Sheila Blair where she encouraged the lenders to keep subprime mortgage borrowers at their initial interest rate if their are living in their home, making timely payments but cant afford the loan to reset to the higher interest rate.

Many have said that the homeowners in foreclosure should take responsibility and not receive any bail-out help Federally. Its time that everyone realize that this doesnt just effect those homeowners losing their homes, it effects ALL of US. New laws need to be enacted where this type of lending practice is not to be readily used for the masses. More regulation and protection for the home buyer needs to be established in the lending field.

I for one, am pleased that something is FINALLY being done to reverse this horror in real estate and with the American Dream of home ownership. This is truly a thankful, Thanksgiving just wish it had come sooner for so many other homeowners.

What are your thoughts on Foreclosure and the effects of foreclosure on the homeowner as well as the country as a whole?

Here are some helpful websites for those homeowners in CA having difficulty or having questions about their mortgages:

CA Consumer Home Mortgage Information

Homeowners Facing Foreclosure

Look for ads on television and with your local city government offices for more help with Stopping Foreclosure and stopping your adjustable rate from going up. The Governor will be running ads soon…there is hope but you MUST act.