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Posts Tagged ‘loan modifications’

Are Foreclosures Really Decreasing?

RealtyTrac – a leading provider of tracking data on Foreclosure Activity, used by many private and public sector organizations to help evaluate foreclosure trends, reported late last week on a national level foreclosure activity dropped 9% in April.

Sounds like good news right?

Well – hold 0n just one minute there, Bucko.   There may, indeed, be more to the story.

What if there were lots and lots of  homeowners, who can’t afford their payments have realized that the banks are taking a long time to take action against them?

What if some of those homeowners just stopped making their payments and are staying in their homes, making no payments for up to a year or more?

Diana Olick of CNBC says these are questions that have to be considered.   Here is her article from May 13, 2010 on this very subject called  “Banks Ignore Delinquent Borrowers”

I’ll hang on here while you go read that.

OK  – Done?

So how does that affect owners that are operating outside of this part of the market.  You know, people who have equity in their house and would like to sell.

While no one knows for sure when those foreclosures are going to hit the market – or if they are in your town, your neighborhood, one thing is for sure.  If they do, it will affect the value of your home in a negative way.

Again – every situation is different and you have to work with your Realtor to determine the best course of action for you.  Having said that, if you are interested in selling, come up with marketing plan and a price point that will move your house quickly.  The idea of  “Trying a high price” for a while – may have passed.

If you have a need to move for one reason of another, such as wanting more space, less traffic, nearer to work or school – just get it done.   Even though the economy shows signs of getting better, the decline in housing prices may not be over – not for quite a while.

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Rick Schwartz,   REALTOR

Homes for sale in Danbury, Bethel, Brookfield, Newtown, New Fairfield, New Milford, Ridgefield and Redding CT.

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New Federal Help for Unemployed Homeowners

February 26, 2010 Leave a comment

Initially this 1.5 Billion Dollar program is being targeted at homeowners in California, Arizona, Nevada, Florida and Michigan – which are the states that have been hit hardest by both unemployment and foreclosures.

The program initiated on 2/19 by President Obama is  designed to provide short-term loans for homeowners who have lost their jobs.

The exact logistics of this plan – how the money will flow – are still being worked out but this is primarily an effort to expand the somewhat limited success of the 2009 Home Affordable Modification Program which has been criticized for not accomplishing it’s goal of helping folks stay in their homes.

Below is a CNN article about this new initiative.  Click on Full Screen to read it.

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Rick Schwartz,   REALTOR

Homes for sale in Danbury, Bethel, Brookfield, Newtown, New Fairfield, New Milford, Ridgefield and Redding CT.

Loan Modification for People NOT behind on their payments

Is there such a thing?  Can you get some assistance on your mortgage simply because the value of your house has depreciated to a level that is less than what you owe?

The answer is a definitive “maybe!” – and might be worth checking out. There are two avenues that might prove fruitful. Both of these can researched by contacting your lender.

Here’s the scoop.

If your mortgage is backed by Fannie Mae or Freddie Mac, there is a program available to lenders enabling them to work with borrowers on loan modifications that will bring the principal amount of the mortgage within the confines of the current market value of the home. It is up to the individual lenders to utilize this program or not and to set the basic eligibility. There is no assurance that your lender will do this but – some are doing it and it could be worth your time to contact your lender to find out how this might apply to you.

The second option that could come into play depends on whether or not you have PMI (Private Mortgage Insurance) on your loan. It also depends on which PMI company your lender uses.  Some PMI companies are offering homeowners a program that will help them out in a situation where they owe more than the value of their home.  There are a few different ways they can help but – again, it will depend on the specific PMI company that you have.  You can find this information out by contacting your lender.

I have to reiterate again that the availability of both of these avenues is dependent on who your lender and your PMI company is and what their policy dictates.  The thing to keep in mind is that you don’t necessarily have to be behind to get help.  The theory is that the lenders and the insurance companies sometimes feel that it is in their best interest to help the home owner a little bit now, rather than incur the cost of a possible foreclosure down the line.