I've been saying this for quite awhile now, sometimes we just need to see it in print. Another bonus to buying now... Get out there looking before the crowds realize the same thing!
Here's another great posting from the KCM Crew.
Many purchasers have been sitting on the sidelines waiting for home prices to hit bottom. They want to guarantee that they are purchasing at the best possible price. Like them, we also believe that prices still have some room to fall in most markets. However, we disagree that waiting is a good financial decision. The buyer should not be concerned about housing prices. They should be concerned about cost.
The cost of a house is made up of the price AND THE INTEREST RATE they will be paying. Two different pieces of news released yesterday highlight this point.
PRICES
The National Association of Realtors (NAR) released their 4th quarter housing research report. In the release, they reported that home sales rose 15.4% in the 4th quarter over the 3rd quarter. They also showed that prices remained stable during the year:
The national median existing single-family price was $170,600 in the fourth quarter, up 0.2 percent from $170,300 in the fourth quarter of 2009.
A buyer who delayed a purchase might find solace in the fact that prices have not increased. However, the other news released yesterday paints a different picture.
INTEREST RATES
The Primary Mortgage Market Survey was released by Freddie Mac which showed that the 30 year fixed rate mortgage was at 5.05%. Frank Nothaft, vice president and chief economist of Freddie Mac said:
“Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week…As a result, interest rates on a 30-year fixed-rate mortgage rose to the highest level since the last week in April 2010.”
So prices have remained stable but interest rates have risen dramatically in the last 90 days. What does that mean to a buyer looking to purchase a home this year?
The price is the same. It just costs more.
Let’s show you what the news means:
By sitting on the sidelines for the last 90 days a purchaser lost:
$89.44 a month
$1,073.28 a year
$32,198.40 over the thirty year life of the mortgage
If you buy a $340,000 home, double all these numbers.
Bottom Line
Even if prices fall another 10% this year, the cost of a home will increase if interest rates go up more than 1%. Buyers should not worry where prices are going. They should be concerned where costs will be later in the year.
Call me...so I can give you... the golden service you deserve.
Showing posts with label chula vista realtor. Show all posts
Showing posts with label chula vista realtor. Show all posts
Friday, February 11, 2011
Tuesday, October 26, 2010
California Foreclosure Laws..Know Your Options
Here are a few bits of information on California's foreclosure laws.
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Typically 120 days
- Right of Redemption: Varies
- Deficiency Judgments Allowed: Varies
In California, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.
Using this type of foreclosure process, lenders may seek a deficiency judgment and under certain circumstances, the borrower may have up to one (1) year to redeem the property.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
A notice of sale must be: 1) recorded in the county where the property is located at least fourteen (14) days prior to the sale; 2) mailed by certified, return receipt requested, to the borrower at least twenty (20) days before the sale; 3) posted on the property itself at least twenty (20) days before the sale; and 4) posted in one (1) public place in the county where the property is to be sold.
The notice of sale must contain the time and location of the foreclosure sale, as well as the property address, the trustee's name, address and phone number and a statement that the property will be sold at auction.
The borrower has up until five days before the foreclosure sale to cure the default and stop the process.
The sale may be held on any business day between the hours of 9:00 am and 5:00 pm and must take place at the location specified in the notice of sale. The trustee may require proof of the bidders ability to pay their full bid amount. Anyone may bid at the sale, which must be made at public auction to the highest bidder. If necessary, the sale may be postponed by announcement at the time and location of the original foreclosure sale.
Lenders may not seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption. It's up to each individual lender as to how they proceed.
If you find you are in pre-foreclosure and would like to know all your options, you can call me and receive a no cost/no obligation to you consultation. No need to feel embarrassed or ashamed, do something now so you can start fresh and let me remove this burden from you.
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Typically 120 days
- Right of Redemption: Varies
- Deficiency Judgments Allowed: Varies
In California, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.
Using this type of foreclosure process, lenders may seek a deficiency judgment and under certain circumstances, the borrower may have up to one (1) year to redeem the property.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
A notice of sale must be: 1) recorded in the county where the property is located at least fourteen (14) days prior to the sale; 2) mailed by certified, return receipt requested, to the borrower at least twenty (20) days before the sale; 3) posted on the property itself at least twenty (20) days before the sale; and 4) posted in one (1) public place in the county where the property is to be sold.
The notice of sale must contain the time and location of the foreclosure sale, as well as the property address, the trustee's name, address and phone number and a statement that the property will be sold at auction.
The borrower has up until five days before the foreclosure sale to cure the default and stop the process.
The sale may be held on any business day between the hours of 9:00 am and 5:00 pm and must take place at the location specified in the notice of sale. The trustee may require proof of the bidders ability to pay their full bid amount. Anyone may bid at the sale, which must be made at public auction to the highest bidder. If necessary, the sale may be postponed by announcement at the time and location of the original foreclosure sale.
Lenders may not seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption. It's up to each individual lender as to how they proceed.
If you find you are in pre-foreclosure and would like to know all your options, you can call me and receive a no cost/no obligation to you consultation. No need to feel embarrassed or ashamed, do something now so you can start fresh and let me remove this burden from you.
Tuesday, October 19, 2010
5 Reasons You Should Sell Your House TODAY!
I love reading Keeping Current Matters and wanted to share this with all of you. Call me if you are thinking of selling, short sale or traditional.
5 Reasons You Should Sell Your House TODAY!
5 Reasons You Should Sell Your House TODAY!by The KCM Crew on October 19, 2010 ·
Selling your house in today’s market can be extremely difficult. It is for that reason that every seller should take advantage of each and every opportunity that appears. Each fall, such an opportunity presents itself. This fall, that opportunity may be just too good to pass up.
Below are five reasons you should consider when pricing your house to sell in the next 90 days. Meet with your real estate agent and mortgage professional today and see whether it is the right move for you and your family.
1. Entering this time of year, the buyers are more serious.
We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the ‘lookers’ are at the stores doing their holiday shopping. The home buyers left in the market are serious and are more apt to make a purchasing decision. Less showings – but to more motivated purchasers.
2. If you are moving up, you can save thousands.
The Chicago Tribune stated in an article last week that sellers who want to ‘trade up’ should act now:
It could be a bigger house, different neighborhood or a better school district, but it comes with a higher price tag. Do the math; this might be the right time.
A home that was once worth $300,000 may now be worth $240,000 in a market where prices have fallen 20 percent. Wow, you think, the seller is taking a bath. But that seller may also be a prospective buyer who wants a house that once was valued at $400,000. With an equivalent market drop and a realistic listing price, that house may now sell for $320,000. So, in effect, the person is losing $60,000 on the sale of one home but coming out ahead $20,000 on the purchase of another.
Keep in mind the spread may be even greater. There’s a smaller pool of potential buyers for more expensive homes, so sellers may be more willing to cut their price to get a deal done.
3. Interest rates just fell again – to 4.19%.
Professor Karl E. Case, the founder of the Case Shiller Pricing Index in an article in the New York Times last month actually did the math for us:
Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833 … housing has perhaps never been a better bargain.
4. You beat the rush of inventory that is coming next year.
Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. As an example, here is the number of listings available for sale in each of those months in 2010.
January – 3,277,000
February – 3,531,000
March – 3,626,000
April – 4,029,000
You won’t have to worry about this increasing competition if you sell now.
5. You have less ‘discounted’ inventory with which to compete.
This year, sellers of non-distressed properties have been given an early holiday present. With banks declaring a suspension on the sale of many distressed properties (foreclosures), there has been a large supply of discounted properties removed from competition. No one knows how long this self imposed moratorium will last. However, while it does, every homeowner has a better chance of selling their property.
Bottom Line
If you are looking to sell in the near future, there may not be a more opportune time than this fall. Serious buyers, great move-up deals and less competition from foreclosures creates the perfect selling situation. Don’t miss it!
5 Reasons You Should Sell Your House TODAY!
5 Reasons You Should Sell Your House TODAY!by The KCM Crew on October 19, 2010 ·
Selling your house in today’s market can be extremely difficult. It is for that reason that every seller should take advantage of each and every opportunity that appears. Each fall, such an opportunity presents itself. This fall, that opportunity may be just too good to pass up.
Below are five reasons you should consider when pricing your house to sell in the next 90 days. Meet with your real estate agent and mortgage professional today and see whether it is the right move for you and your family.
1. Entering this time of year, the buyers are more serious.
We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the ‘lookers’ are at the stores doing their holiday shopping. The home buyers left in the market are serious and are more apt to make a purchasing decision. Less showings – but to more motivated purchasers.
2. If you are moving up, you can save thousands.
The Chicago Tribune stated in an article last week that sellers who want to ‘trade up’ should act now:
It could be a bigger house, different neighborhood or a better school district, but it comes with a higher price tag. Do the math; this might be the right time.
A home that was once worth $300,000 may now be worth $240,000 in a market where prices have fallen 20 percent. Wow, you think, the seller is taking a bath. But that seller may also be a prospective buyer who wants a house that once was valued at $400,000. With an equivalent market drop and a realistic listing price, that house may now sell for $320,000. So, in effect, the person is losing $60,000 on the sale of one home but coming out ahead $20,000 on the purchase of another.
Keep in mind the spread may be even greater. There’s a smaller pool of potential buyers for more expensive homes, so sellers may be more willing to cut their price to get a deal done.
3. Interest rates just fell again – to 4.19%.
Professor Karl E. Case, the founder of the Case Shiller Pricing Index in an article in the New York Times last month actually did the math for us:
Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833 … housing has perhaps never been a better bargain.
4. You beat the rush of inventory that is coming next year.
Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. As an example, here is the number of listings available for sale in each of those months in 2010.
January – 3,277,000
February – 3,531,000
March – 3,626,000
April – 4,029,000
You won’t have to worry about this increasing competition if you sell now.
5. You have less ‘discounted’ inventory with which to compete.
This year, sellers of non-distressed properties have been given an early holiday present. With banks declaring a suspension on the sale of many distressed properties (foreclosures), there has been a large supply of discounted properties removed from competition. No one knows how long this self imposed moratorium will last. However, while it does, every homeowner has a better chance of selling their property.
Bottom Line
If you are looking to sell in the near future, there may not be a more opportune time than this fall. Serious buyers, great move-up deals and less competition from foreclosures creates the perfect selling situation. Don’t miss it!
Monday, August 16, 2010
Know Your Options To Avoid Foreclosure...You Are Not Alone.
At Century 21 Award we understand how the economy has impacted some of our neighbors in relation to their homes. If you are experiencing difficulty in making your monthly mortgage payment or foresee in the near future a problem, I might be able to help. Despite what you might be hearing from the media, friends or co-workers, there are alternatives to losing your home.
I'm a Certified Short Sale & Foreclosure Resource professional from Century 21 Award, and have been helping owners and prospective homeowners in our communities. I began helping families facing foreclosure, become aware of all the options available for retaining their home or receiving fair market value, and purchasing 2 years later.
New Government Programs - Alternative Options
HAP Home Affordable Program (military only)
HARP Home Affordable Refinance Plan
HAMP Home Affordable Modification Program
HAFA Home Affordable Foreclosure Alternative
Don’t lose your home and/or the equity you’ve worked so hard to build up just because you’re too embarrassed to get advice. We have helped people in your situation, and we can help you too. Please give me a call at 619-417-5645 Let me remove this burden from you.
I'm offering a free and private consultation to review your options. I'll provide you with the information you need, so you can make the best possible decision for you and your family. It’s nothing to be ashamed of millions of homeowners are facing the exact same situation.
NO OBLIGATION - FREE CONSULTATION.
I'm a Certified Short Sale & Foreclosure Resource professional from Century 21 Award, and have been helping owners and prospective homeowners in our communities. I began helping families facing foreclosure, become aware of all the options available for retaining their home or receiving fair market value, and purchasing 2 years later.
New Government Programs - Alternative Options
HAP Home Affordable Program (military only)
HARP Home Affordable Refinance Plan
HAMP Home Affordable Modification Program
HAFA Home Affordable Foreclosure Alternative
Don’t lose your home and/or the equity you’ve worked so hard to build up just because you’re too embarrassed to get advice. We have helped people in your situation, and we can help you too. Please give me a call at 619-417-5645 Let me remove this burden from you.
I'm offering a free and private consultation to review your options. I'll provide you with the information you need, so you can make the best possible decision for you and your family. It’s nothing to be ashamed of millions of homeowners are facing the exact same situation.
NO OBLIGATION - FREE CONSULTATION.
Sunday, May 30, 2010
Smooth sailing...or is there another swell looming ahead??
The housing market is facing more and more homeowners who are 90+ days delinquent but have yet to lose their homes, this is threatening a new wave of foreclosures that could hit just as the real estate market has begun to stabilize.
Approximately 7 million properties could be heading for foreclosure. Some economists think it could take almost three years before all these homes have been put on the market and purchased by new owners. The number of pending foreclosures could grow much bigger over the coming year as more distressed borrowers become delinquent and then if they can't get a loan modification, go through the foreclosure process, which can take up to a year to complete. When these foreclosed properties add to the supply of homes for sale, they could add to a decline in housing prices, which have increased slightly through April. That rise was partly because of the tightened flow of foreclosed homes into the market and the $8000 First Time Buyer Tax Credit. Perfect example of supply and demand, a lot of buyers and not enough inventory.
The rate of seized properties, for example, peaked in the middle of 2008 and fell steadily last year, but the banks expect foreclosures to increase this year, nearly doubling to 45,000 by the fourth quarter.
So the positive housing data may not be signaling a true bottom, as many servicers are holding back on foreclosures and the distressed houses are not yet being offered for sale. It could take almost 3 years to clear the backlog.
While banks foreclosed on fewer homes in February than a month earlier, borrowers continued to fall behind on their payments, adding to the inventory of properties headed toward foreclosure that have yet to be put on the market.
The shadow inventory reflects the increasing lag between defaults and foreclosures. Many lenders are struggling to keep up with the overwhelming number of borrowers who aren't making their payments, they're hesitant to rush in and foreclose, which would mean adding more homes onto the market, bringing prices into decline once again.
If you or anyone you know, would like to avoid foreclosure and know your options, please feel free to contact me.
Approximately 7 million properties could be heading for foreclosure. Some economists think it could take almost three years before all these homes have been put on the market and purchased by new owners. The number of pending foreclosures could grow much bigger over the coming year as more distressed borrowers become delinquent and then if they can't get a loan modification, go through the foreclosure process, which can take up to a year to complete. When these foreclosed properties add to the supply of homes for sale, they could add to a decline in housing prices, which have increased slightly through April. That rise was partly because of the tightened flow of foreclosed homes into the market and the $8000 First Time Buyer Tax Credit. Perfect example of supply and demand, a lot of buyers and not enough inventory.
The rate of seized properties, for example, peaked in the middle of 2008 and fell steadily last year, but the banks expect foreclosures to increase this year, nearly doubling to 45,000 by the fourth quarter.
So the positive housing data may not be signaling a true bottom, as many servicers are holding back on foreclosures and the distressed houses are not yet being offered for sale. It could take almost 3 years to clear the backlog.
While banks foreclosed on fewer homes in February than a month earlier, borrowers continued to fall behind on their payments, adding to the inventory of properties headed toward foreclosure that have yet to be put on the market.
The shadow inventory reflects the increasing lag between defaults and foreclosures. Many lenders are struggling to keep up with the overwhelming number of borrowers who aren't making their payments, they're hesitant to rush in and foreclose, which would mean adding more homes onto the market, bringing prices into decline once again.
If you or anyone you know, would like to avoid foreclosure and know your options, please feel free to contact me.
Sunday, February 14, 2010
Great News...5% Conventional Loans Are Back!
That is great news. 5% conventional loans are back! Greenpath Funding is an affiliate of Wells Fargo Home Mortgage. I'm happy to announce we now have Greenpath Funding in our office at CENTURY 21 Award. I work in the Chula Vista - Eastlake office. That means you can arrange for your appointment with myself and John Sagredo, our Home Mortgage Consultant. John has such a great rapport with our clients, willing to go that extra mile. If he can help you improve your credit score he will!
In today's market, you have a better chance of getting your offer accepted with a conventional loan vs FHA. The required credit scores are a little higher, excellent for those with great credit but not enough savings for a 10-20% down payment. Something you might want to learn more about and see if you qualify. It increases your odds when the offer you've submitted is being reviewed.
Please give me a call and let's get you into that new home before the $8,000 First Time Buyer
Credit or "Move-Up"Credit for $6,500 has expired.
Terry L Bursky
REALTOR
619.417.5645
In today's market, you have a better chance of getting your offer accepted with a conventional loan vs FHA. The required credit scores are a little higher, excellent for those with great credit but not enough savings for a 10-20% down payment. Something you might want to learn more about and see if you qualify. It increases your odds when the offer you've submitted is being reviewed.
Please give me a call and let's get you into that new home before the $8,000 First Time Buyer
Credit or "Move-Up"Credit for $6,500 has expired.
Terry L Bursky
REALTOR
619.417.5645
Friday, February 12, 2010
Thinking Of Selling Your Home?
If you are thinking of selling your home, now might be the right time. Traditional sellers... have a great opportunity to receive a "Move-Up" Tax Credit of $6500.
*Short Sales...You are not alone. Many home owners are facing the same stressful times as you might be facing, I can help you through this. Programs such as HAMP (Home Affordable Modification Plan)and HAFA (Home Affordable Foreclosure Alternatives Program) are making it easier to deal with the default and foreclosure rate. If you'd like to try and stay in your home or decide to short sale, I'll be with you every step of the way. In some cases you will be able to purchase another home in as little as 2 years.
*Short Sales...There are no fee's or commissions paid by you (the seller) if you list your home with CENTURY 21 Award
Please give me a call and let's start getting you the help you need and deserve.
Most sincerely,
Terry L Bursky
Realtor
(619) 417-5645
*Short Sales...You are not alone. Many home owners are facing the same stressful times as you might be facing, I can help you through this. Programs such as HAMP (Home Affordable Modification Plan)and HAFA (Home Affordable Foreclosure Alternatives Program) are making it easier to deal with the default and foreclosure rate. If you'd like to try and stay in your home or decide to short sale, I'll be with you every step of the way. In some cases you will be able to purchase another home in as little as 2 years.
*Short Sales...There are no fee's or commissions paid by you (the seller) if you list your home with CENTURY 21 Award
Please give me a call and let's start getting you the help you need and deserve.
Most sincerely,
Terry L Bursky
Realtor
(619) 417-5645
Monday, November 30, 2009
Housing Affordability In California
This is great news! Interest rates are so low and more REO's for the market soon. The First Time Buyer Credit extension and now the "Move-Up" credit of $6,500. What better time is it to buy? CENTURY 21 Award and Wells Fargo have joined together to create GreenPath financing. With over 1700 different types of loans.
This was on the C.A.R. page this morning -
In the third quarter of 2009, nearly two-thirds (64 percent) of California's households could afford a home at an entry-level price of $247,150. The monthly mortgage payment including interest, taxes, and insurance (PITI)-based on a 10 percent down payment and the prevailing mortgage rate of 4.79 percent-added up to $1,450. That is $340 less when compared to a year ago, when the entry-level home was priced at $290,490, the mortgage rate was 5.30 percent, and the monthly (PITI) was $1,790. The First-time Buyer Affordability Index is 9 points higher than the third quarter of 2008 when only 55 percent of the households were able to afford a home. While this affordability index only goes back to 2000, other affordability measures indicate that affordability has been at a historically high level in 2009 even compared to the 1980s and 1990s.
Buyers if you are not in a position to buy now, talk with your banking institution and find out how to get yourself ready to purchase a home before you are out priced again. Please remember to get at least 2-3 quotes from different lenders on rates and fees, these are negotiable. Your REALTOR can help you in that area as well, by referring lenders they have worked with in the past. The choice is yours. So, now is the time to start planning before the mad rush in early springtime.
This was on the C.A.R. page this morning -
In the third quarter of 2009, nearly two-thirds (64 percent) of California's households could afford a home at an entry-level price of $247,150. The monthly mortgage payment including interest, taxes, and insurance (PITI)-based on a 10 percent down payment and the prevailing mortgage rate of 4.79 percent-added up to $1,450. That is $340 less when compared to a year ago, when the entry-level home was priced at $290,490, the mortgage rate was 5.30 percent, and the monthly (PITI) was $1,790. The First-time Buyer Affordability Index is 9 points higher than the third quarter of 2008 when only 55 percent of the households were able to afford a home. While this affordability index only goes back to 2000, other affordability measures indicate that affordability has been at a historically high level in 2009 even compared to the 1980s and 1990s.
Buyers if you are not in a position to buy now, talk with your banking institution and find out how to get yourself ready to purchase a home before you are out priced again. Please remember to get at least 2-3 quotes from different lenders on rates and fees, these are negotiable. Your REALTOR can help you in that area as well, by referring lenders they have worked with in the past. The choice is yours. So, now is the time to start planning before the mad rush in early springtime.
Saturday, November 28, 2009
Deed for Lease - Fannie Mae Program
The Deed for Lease Program provides an option for qualifying homeowners who are facing foreclosure and are not eligible for modifications. The new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a stressful period, and helps to stabilize neighborhoods.
The program is designed for borrowers who don't qualify for or have not been able to sustain other loan-workout solutions, such as a modification. With Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.
To participate in the program, borrowers must live in the home as their primary residence and must be released from any junior liens on the property. Tenants of borrowers in this case may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.
Leases under this new program may be up to 12 months, with the possibility of a term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.
For more information about the Deed for Lease Program, including details on program eligibility, check out - www.efanniemae.com.
So many options to choose from and difficult decisions to make. Always seek the advice of legal council and a professional tax preparer for your particular needs.
If I can help you please contact me. CENTURY 21 Award - #1 Firm
The program is designed for borrowers who don't qualify for or have not been able to sustain other loan-workout solutions, such as a modification. With Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.
To participate in the program, borrowers must live in the home as their primary residence and must be released from any junior liens on the property. Tenants of borrowers in this case may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.
Leases under this new program may be up to 12 months, with the possibility of a term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.
For more information about the Deed for Lease Program, including details on program eligibility, check out - www.efanniemae.com.
So many options to choose from and difficult decisions to make. Always seek the advice of legal council and a professional tax preparer for your particular needs.
If I can help you please contact me. CENTURY 21 Award - #1 Firm
Subscribe to:
Posts (Atom)
