UNDERWATER OR UPSIDE DOWN?
November 2, 2011 by lreategui · Leave a Comment
Did you know that at 
the end of the 2nd quarter of 2011, 10.9 million homes were underwater, which
is approximately 22.5% of all residential properties? Most of the “underwater” properties
are concentrated in Arizona, California, Florida, Michigan, and Nevada, with
Nevada having the most homes with negative equity (60%).
A property is upside down or underwater property when it has
negative equity because the mortgage balance is higher than the value of the
property.
Currently, owners who are upside down can continue paying the mortgage, stop paying the mortgage and let the servicer foreclose, or work with the servicer using a short sale or a deed in lieu of foreclosure.
So…you can’t refinance your home because there is just no equity and your mortgage is not government owned…A forbearance won’t work because your hardship situation is long term and a reinstatement is just not a possibility because you are just way behind on your mortgage payments. You may have also applied for a loan modification and you were either ineligible, did not complete your trial period payments or you just still can’t make ends meet…What is next? Can you still save your home for going to foreclosure? Are there any other alternatives out there for you? The answer is YES!
There are two last alternatives to foreclosure that may or may not seem familiar to you, and we will explain them in detail so you can understand that you can still save your credit and move on with your life without having to go through a foreclosure:
THE SHORT SALE OR THE DEED IN LIEU
BUT WHAT ARE THEY???? 
In plain English, Short Sale is selling your home for less
than what you owe…This means your lender/seller will receive less net proceeds
and will take a loss on that difference. In this situation, the lender can
recoup some of the funds they let you borrow from them. So you put your house on the market, wait for
a fair offer, submit to lender for approval, and if approved, you can sell home
solve your problem of negative equity without having to pay the difference. In
some states, like California…there is no deficiency, which means they won’t go
after you for the balance, even if you have 2 or more liens on the property.
A Deed in Lieu simply means, you take your keys and surrender
your home to the lender, and just walk away, just like you would if you did a
voluntary repossession of your car. The lender will consider full satisfaction
of the total amount due on the mortgage and as a substitute for foreclosure.
When this occurs, the servicer avoids a lengthy and costly foreclosure
proceeding. In this situation you would have to be able to provide marketable
title, free and clear of mortgages, liens, and encumbrances (that is, free of
debt)
WHICH OPTION IS RIGHT FOR ME?
The lender will always want for you to consider other alternative options before a
Short Sale or Deed in Lieu…They will always prefer a Short Sale over a Deed in
Lieu, because lenders are simply not in the business of Real Estate, they are
in the business of making money. They prefer to take a loss on the mortgage
than to keep inventory of homes.
There are government programs available to provide incentives to homeowners that
choose these two options, and most lenders participate on them. If you are eligible, they will give you an incentive at closing, to help you with moving expenses. Some lenders offer $3000 and up to $5000, and will help you pay your other liens.
If you are in need of a lifeline, call us we can discuss your Foreclosure Alternatives…Don’t wait until it is too late…if you are foreseeing being late on your mortgage…pick up the phone and give us a call so we can get you started on one of these programs!
HARP: A SNAPSHOT…
October 25, 2011 by lreategui · Leave a Comment
If you have been following the news lately, you may have heard that President Obama announced important changes to the Home Affordable Refinance Program (a.k.a. HARP). What does this mean to you as a homeowner?
This program, in a snapshot, is that if you are upside down on your mortgage and have not been able to find a solution or alternative to your situation, you may be able to refinance at historic low rates, if your mortgage is owned by Fannie Mae or Freddie Mac. So there may be a light at the end of the tunnel. Since its inception back in 2009, the Home Affordable
Refinance Program was created with the intention to help struggling homeowners to keep their home. Loan modifications
and short sales are currently the top two alternatives to foreclosure, but most of the time it means you are already late on your mortgage, meaning your credit is probably damaged. A refinance would be a solution to homeowners that are not yet late on their mortgages…This would not only help to save their home, but also their credit.
The enhancements announced on October 24th, will allow some homeowners who are not currently eligible to refinance to do so
under HARP. The changes cut fees for borrowers who want to refinance into short-term mortgages and some other borrowers. They also eliminate a cap that prevented “underwater” borrowers who owe more than 125 percent of what their property is worth from accessing the program. The process will be more streamlined, eliminating appraisal and underwriting requirements, and also
lessen the risk for Fannie Mae and Freddie Mac.
HOW TO KNOW IF YOU ARE ELIGIBLE?
In general, you must meet the following criteria:
- Your mortgage must be owned or guaranteed by
Fannie Mae or Freddie Mac - Mortgage must have been sold to Fannie Mae or
Freddie Mac on or before May 31, 2009 - The mortgage cannot have been refinanced under
HARP previously unless it is a Fannie Mae loan that was refinanced under HARP
from March-May 2009 - The current loan-to-value (LTV) ration must be
greater than 80% - The borrower must be current on the mortgage at
the time of refinance, with no late payments in the past six months and no more
than one late payment in the past 12 months
“We know that there are many homeowners who are eligible to refinance under HARP and those are the borrowers we want to reach,” said FHFA Acting Director Edward J. DeMarco. “Building on the industry’s experience with HARP over the last two years, we have identified several changes that will make the program accessible to more borrowers with mortgages owned or guaranteed by the GSEs. Our goal in pursuing these changes is to create refinancing opportunities for these borrowers, while reducing risk for Fannie Mae and Freddie Mac and bringing a measure of stability to housing markets.”
So, if you or someone you know is underwater right now and has not missed any payments but is struggling to do so, give us a call! All of our assessments are complimentary, and it will be our pleasure to help you or your loved ones to keep their home. Call us today 619-270-8080.
LA COMBINACION PERFECTA
October 5, 2011 by lreategui · Leave a Comment
Seguramente has escuchado en diferentes medios que las tasas de
interés estan históricamente bajas, lo cual hace atractiva la inversión en
propiedades o bienes raíces.
Aunado a las tasas bajas, y como consecuencia de la crisis del
2007, las propiedades se han mantenido en valores relativamente bajos. Por
ejemplo, un condominio que en el 2007 tenía un valor de $307,000 dlls ahora puede
ser adquirido en $160,000, lo cual refleja una disminución en valor de más del
50%.
¿Qué significa esto para tí? Que estamos en un momento unico en la historia, donde tanto las tasas de
interes , como los valores de las propiedades, están a niveles históricamente bajos, haciendo
de esta una combinación perfecta para la inversion en bienes raíces .
Si estas en el mercado para comprar tu primer vivienda, existen
programas a nivel estatal y federal que te permiten comprar una propiedad con
un enganche tan bajo como el 3%, con asistencia para pagar tus costos de cierre
(escrituras, título, costos de financiamiento).
Si estas buscando incursionar en el mundo de las inversiones
hipotecarias al estilo de Donald Trump, hay una gama de opciones para ti. Desde condominios, unidades (duplex) , lotes baldíos y
propiedades comerciales para rehabilitar y re-vender, o para rentar. El
enganche puede ser tan bajo como el 10% e intereses por debajo de 6%.
En cualquiera de los casos, nuestro equipo es experto en estos escenarios
y con gusto podemos proporcionarte mayor informacion al respecto!
Llamanos hoy al 619-270-8121
Market news
August 8, 2011 by lpaz · Leave a Comment
In the Market, the U.S.’s credit rating was downgraded to AA+ from AAA, a rating the U.S. had previously held for 70 years and traders have interpreted the news to mean the sctock market is weak. Again, when the stock market is viewed as weak, traders typically invest in bonds instead of stocks which is good for rates. Tomorrow is the Fed meeting and with the recent news of the credit rating, everyone will be closely watching.
What’s going on in the market
August 5, 2011 by lpaz · Leave a Comment
Global stock markets have been hammered the past two days, and although the positive jobs data in the U.S. gave some relief, the problems in the European Union continue to threaten financial stability
The U.S. stock market’s initial reaction to this morning’s jobs report was positive, however, that has quickly reversed to another steep decline. U.S. Treasury prices are lower as well with the yield on the 10 year note now standing at 2.45%, up from 2.41%. Mortgage prices are worse between .375% and .50%.
