Here's the deal: Freddie Mac is offering up to 3.5% in closing-cost assistance to homebuyers for offers on HomeSteps properties that are received by July 31, 2011, with escrow closing no later than September 30.
HomeSteps homes are foreclosures owned by Freddie Mac. That represents some serious money for homebuyers. For example, on the purchase of a home worth $150,000, HomeSteps would pay up to $5,250 towards the buyers closing cost. Pretty sweet!
This deal may sound familiar. Fannie Mae has been offering a similar deal on homes closing by June 30.
Currently there are two homes for sale in Folsom that are eligible for the Freddie Mac incentive with possibly more coming on line. Freddie Mac says it expects the REO inventory to grow (REO stands for real-estate owned--the term banks use to describe as properties they have foreclosed).
Write me if you would like more details...
all4now
Showing posts with label Distressed Properties. Show all posts
Showing posts with label Distressed Properties. Show all posts
Thursday, May 19, 2011
Thursday, April 7, 2011
Homeowners at risk of losing homes may find help from CA expanded eligibility requirements
With the recent announcement by the California Housing Finance Agency (CalHFA) that it is expanding the eligibility requirements for three programs designed to help distressed homeowners, those who tapped into their home equity or took out loans after 2008, may now qualify for three programs aimed at helping families at risk of losing their homes. CalHFA is expanding the eligibility requirements as follows for three of four programs it has to help homeowners:
- The Unemployment Mortgage Assistance Program (UMA), which provides a mortgage payment subsidy of up to $3,000 a month for six months for unemployed homeowners in imminent danger of foreclosure.
- The Mortgage Reinstatement Assistance Program (MRAP), which provides up to $15,000 per household for homeowners who have fallen behind on their mortgage payments due to a temporary change in household circumstance.
- The Transition Assistance Program, which provides relocation assistance in conjunction with a short sale or deed-in-lieu of foreclosure.
If you need help and think you may now be eligible for one of CalHFA’s programs under the new eligibility requirements, simply contact the Keep Your Home California call center at (888) 954-5337.
Borrowers must own and occupy the home as their primary residence, meet income limits and face a documented financial hardship to qualify for any of the four programs. The following loan servicers participate in all four programs: GMAC, Guild Mortgage, CalHFA and California Department of Veterans Affairs. Bank of America, JPMorgan Chase, CitiMortgage and Wells Fargo participate in some, but not all of the programs, so check with CalFHA to check eligibility.
all4now
Friday, February 4, 2011
Shadow inventory of homes may take 4 years to clear
The latest from analysts at Standard & Poor’s Ratings Services is that it may take more than four years to clear the so-called “shadow inventory” of distressed homes that aren't yet on on the market. This could, S&P says, undermine real estate prices while the backlog clears.
“Shadow inventory” is defined as properties with borrowers who are 90 days or more delinquent on their mortgage payments, properties currently or recently in foreclosure, or properties that are real estate owned (REOs).
The estimate of how long the backlog would take to clear is up 11 percent from the previous quarter and up 40 percent from a year ago. What’s interesting according to the article I saw on this is that the increase in the estimated time needed to clear the shadow inventory is due to the fact that it’s taking longer for lender to liquidate distressed properties, not because the number of distressed properties is growing, the S&P analysts say.
The good news, says S&P, is that the overall level of distressed loans continues to decline, and that loan-cure success rates (most often the result of loan modifications) have been improving since the second half of 2008.
An interesting statistic from the article is that although some 45-50% of the loans modified or cured in the fourth quarter of 2009 re-defaulted within the first year of modification, that's an improvement from the nearly 80% re-default rate on loans modified or cured during the first quarter of 2008.
I wasn’t able to get the number for the greater Sacramento area but will post those if I can get them. all4now
“Shadow inventory” is defined as properties with borrowers who are 90 days or more delinquent on their mortgage payments, properties currently or recently in foreclosure, or properties that are real estate owned (REOs).
The estimate of how long the backlog would take to clear is up 11 percent from the previous quarter and up 40 percent from a year ago. What’s interesting according to the article I saw on this is that the increase in the estimated time needed to clear the shadow inventory is due to the fact that it’s taking longer for lender to liquidate distressed properties, not because the number of distressed properties is growing, the S&P analysts say.
The good news, says S&P, is that the overall level of distressed loans continues to decline, and that loan-cure success rates (most often the result of loan modifications) have been improving since the second half of 2008.
An interesting statistic from the article is that although some 45-50% of the loans modified or cured in the fourth quarter of 2009 re-defaulted within the first year of modification, that's an improvement from the nearly 80% re-default rate on loans modified or cured during the first quarter of 2008.
I wasn’t able to get the number for the greater Sacramento area but will post those if I can get them. all4now
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