Things about Real Estate that you NEED to know!

by on April 15, 2009

Right now, real estate is an area where things are shifting every day. I will do my best to keep you updated on all things real estate…

Many people are waiting for an announcement from the federal government regarding revised loan limits. The current conforming limit is $625,500 in the Bay Area. The House is kicking around the idea of reinstating the $729,950 limit again. I will keep you posted on this.

The Obama administration rolled out the Homeowner Affordability & Stability Plan. This is a two pronged plan aimed at low-cost refinancing and loan modifications.

To be eligible for the low-cost refinancing the loan most be owned or securitized by Fannie or Freddie. The loans can not exceed 105% of the homes current value. These loans will have no prepayment penalties or balloon payments. There are no refinance cash-outs. Borrowers who are currently delinquent or have been 30 days over due more than once during the last 12 months will not qualify.

With respect to the loan modification portion of this package, the homeowner may contact the company who is currently servicing their loan. To be eligible for this program, the homeowner must be at risk of default or foreclosure. They must have experienced some form of financial hardship, including loss of income, a significant increase in expenses or have an interest rate that will reset to an unaffordable level. Monthly mortgage payments (including principal, interest, taxes, insurance and HOA’s, if applicable) must exceed 31% of the monthly gross income for the household. The unpaid principal balance on the home loan must be equal to or less than $729,950 for single unit properties (this limit is higher for 2-4 units).

If there is a second loan on the property, only the first note is eligible for a modification and must have originated on or before January 1st, 2009. Qualifying loans include those owner or securitized by Fannie & Freddie.

FYI, home sales are climbing! And, it’s multiple offer time again!

Be Sociable, Share!

Previous post:

Next post: