New Loan Modifications (In a Nut Shell)

I received a wonderful email from a trusted lender. 

She was explaining "in a nutshell" the newer loan modification/refinance initiatives coming from the White House.  I wanted to pass this along to you:

*  Once again, the programs are VOLUNTARY.  Banks do not have to participate.

*  The offer from the government is to provide a federal loan insurance (FHA) on refinanced mortgages if the current lender will reduce the first mortgage to 96.5% of the current market value.  If there is a second trust on the home, the total loan to value cannot exceed 115% of the total value of the home.  In the case of having two separate lenders, they may have to be working together to reduce what was originally owed to them.

*  What makes this a good idea is that the lenders get the underwater borrowers and risk of foreclosure; and replace it with an insurable loan program through FHA.  The fed has allotted $14 billion dollars to pay for this program. That will be the incentive to the banks to participate.  If you already have an FHA loan, this is not a program for you, but there may be other products, such as a streamline FHA refinance that is available to you.

*  It will take a few months (at best) for lenders to assess the risk and determine how or if, they will participate.

I'd like to thank Cindy for providing me, and in turn, you, with reducing this complicated program to the basics, so I can provide you this information... in a Nut Shell!

Who do I think this will help?  Those with 2 mortgages with the same bank (careful, you do  not always know who the "investor" is - just because you pay both mortgages to Bank of America doesn't mean that they own the loan; they are the largest loan SERVICER in the country, but they don't actually own all the mortgages they service.

Why?  Because let's say BofA does own both mortgages: an $80K loan and a $20K loan on the same house that is now worth $60K.  They can foreclose and get $60K minus the costs to foreclose and sell, so someething like $50K... OR they can refi with an insured loan for $69,000. 

We'll see how this plays out, but this is my expectation.

==========================

For all your lending needs, please contact:

Cindy Fox, Senior Mortgage Planner

12500 Fair Lakes Circle, Suite 130

Fairfax, VA 22033

cfox@mcleanlending.com

(703) 409-2002 cell

Dominion will offer rebates for energy efficiency, pass cost to all customers

Dominion Virginia Power has won state regulators' approval for five energy-efficiency programs that will cost the company $28.1 million. The programs will be paid for with additional charges to customers' monthly bills. Starting May 1, residential customers using 1,000 kilowatt hours per month will pay about 52 cents more.

Homeowners will be able to collect rebates for buying energy-efficient lighting. Households with low incomes can apply for free energy audits and home improvements.

Read more at The Virginian-Pilot....

http://hamptonroads.com/2010/03/dominion-wins-ok-energyefficiency-rebate-programs

Movin' Movin' Movin' Get Our Economy Moving Along

Governors from Virginia, Alabama, Mississippi, Pennsylvania, and Tennessee call for a rail corridor along I-81. State governments say this will reduce congestion and they estimate this could add 47,000 jobs in ten years, and 73,000 jobs by 2030.

Read more... Washington Post

How Affordable Is Your Area

Via Virginia Housing Alliance... New Statistics on Regional Affordability:

The Center for Neighborhood Technology has released its Housing and Transportation Affordability Index, which factors in the cost of transportation when calculating the cost of living in greater metropolitan areas.

Loudoun County is deemed "affordable" with housing cost averaging less than 30% of household income. HOWEVER, the "Housing and Transportation Affordability Index" (new) says those costs combined should be 45% or less of household income. In Loudoun, it averages more than 50% (compared with DC region which is 44%).

Read more:   Follow links to an interactive map of the nation for statistics where you live, and read the Washington Facts Sheet.

New Help for Unemployed Homeowners

The Obama administration on Friday will announce changes to its Home Affordable Modification Program (HAMP) that will provide financial aid for unemployed homeowners with emphasis on writing down the principal of troubled loans.

With the jobless rate still near 10%, more homeowners are falling behind on payments and risk falling into deliquency. The new measures would help by giving unemployed homeowners three months of forbearance, giving them much-needed breathing room. Reducing the principal of the loan, rather than simply reducing the mortgage interest rate, will also be considered.

Keeping people in their homes, and holding down foreclosures, is key to helping the housing market recover.

Read more at CNBC....

News from the Virginia Homeowner Alliance

I wanted to circulate to you the Virginia Homeowner Alliance Newsletter I received today.  It contains some good news and many things that may affect you, as a homeowner, here in Virginia!

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March 18, 2010

The Virginia Homeowners Alliance is a free service for homeowners from Virginia's Realtors, who want to stand with you to ensure that your property values aren't negatively affected by government decisions at the General Assembly, Board of Supervisors, or City Hall. We inform Virginia homeowners about government action that affects the value of real estate in the Commonwealth.

Virginia General Assembly approves 3 homeowner-friendly bills and a budget that may squeeze local governments.  Virginia's legislature sent three bills that benefit homeowners to Gov. McDonnell and approved a $70 billion budget that may reduce local government programs or force them to raise property taxes.

 

Besides the budget, there were hundreds of bills debated, but we focused on three bills dealing with two issues critical to homeowners: 1) tax assessments and 2) property rights. Assessments determine your taxes; and the less restrictive Virginia's property laws are, the more attractive Virginia's real estate markets become.

 

In This Issue: 

• Yes, Virginia, we have a budget
• House Bill 552: Preventing local governments from changing their minds about zoning  
• House Bill 430: Increasing fairness in the real estate assessment process
• House Bill 191: Making sure HOA complaints are handled fairly (go)

 

Yes, Virginia, we have a budget : 

Legislators have passed one of the most difficult state budgets that anyone can remember. Now they're breathing a sigh of relief, as the budget cuts aren’t as bad as many had feared. The General Assembly added no new taxes, which may force localities to either cut back on programs or expenditures, or increase taxes at the local level.

 

The value of a home is often closely tied to the quality of its nearby schools. Some homeowners may be concerned because class sizes are expected to rise by one pupil as $1.25 billion in education funding was cut. But it could have been worse for many districts: lawmakers held funding steady for school systems that would have received even less state money under a formula known as the composite index.

 

The budget also preserves car tax relief for Virginians. After making many spending cuts, legislators balanced the budget by raising fees on some government services, not by raising taxes, which affects virtually everyone.

  

House Bill 552: Preventing local governments from changing their minds about zoning: 

HB552 PASSED THE HOUSE AND SENATE Imagine having your local government approve a zoning change so you can improve your property. But after you begin work, the locality reverses its decision, and you're forced to tear down what you've done.

 

It can happen and it does happen. This law will prevent that by strengthening "vested rights" laws to prevent localities from changing their decisions on zoning rulings.

 

House Bill 430: Increasing fairness in the real estate assessment process

HB430: PASSED THE HOUSE AND SENATE

Some more education for the people in charge of real estate appraisals can only make our system better. This new law will require additional education for real estate assessors, and ensure that members of the board that hears your appeal have expertise in appraisal and home valuation. It will also make the appeals process friendlier for homeowners: Upon request, the assessor must disclose information about your assessment, and the homeowner's standard of proof will be lowered.

 

House Bill 191: Making sure HOA complaints are handled fairly

HB191: PASSED THE HOUSE AND SENATE

Today, if you have a complaint about your homeowners association, an ombudsman at a Virginia government agency called the Common Interest Community Board can help resolve it. But different HOAs have different complaint procedures. This new law allows the ombudsman to set a single procedure for all home- and property-owners associations.

 

The General Assembly has adjourned for the year, but your local government meets year round. Your membership in the Virginia Homeowners Alliance keeps you informed about local real estate taxes, property assessments, new residential and commercial developments, transportation, school construction and a host of other issues affecting your home, neighborhood, and way of life.

 

Read YOUR VIRGINIA newsletter six times per year and visit VAHomeownersAlliance.com every day to stay informed about state and local issues that affect your property values and homeowner rights. The next edition will feature more specific information about how you’ll benefit from the three homeowner friendly bills passed by the General Assembly.

 

Make sure you continue receiving the YOUR VIRGINIA newsletter: Click here to join the Virginia Homeowners Alliance now!

*****

Stay Tuned to the Real Estate Whisperer for continuing news and information about home/property ownership issues and real estate information!

Special Home Purchase Program for Loudoun County Employees

Although it is not well publicized, there is a special program for Loudoun County employees (including LCPS employees) to assist them with purchasing a home. It is done in the form of a low interest, FORGIVABLE loan.  That's right, I said forgivable, meaning that you might not need to pay it back at all.

Highlights:

• Amounts of $5,000 to $25,000 are available (depending on the property purchased).
• Program is available to FULL OR PART TIME employees, so long as they are beyond their probationary period.
• Program applies to first time buyers, or those moving into the county are eligible.

Loan is forgivable at 20% per year, so long as the employee meets the following criteria:

• Remains employed by the county.
• Continues to occupy the property as a primary residence.

If the employee meets this criteria for 5 years, the loan is forgiven in full.  Otherwise, the loan is charged a 5%  interest rate, and is to be paid from the proceeds of the sale (if the property is sold) or as a normal mortgage payment amortized over 27 years, but with no payment due for the first 4 years.

If you qualify, and you're thinking of buying a home, this may be an amazing opportunity.  Adding this to the current tax credit (up to $8,000) and the incredibly low interest rates currently available (but not expected to stick around long - Click here to see article from the Wall Street Journal , you could really be missing the boat by not acting NOW.  

Want details and to find out if you qualify?  I am available anytime:

Vicky Chrisner * REALTOR

Keller Williams Realty * Leesburg, VA

Ofc: 703-669-3142

Email: VChrisner@KW.com

Facebook is My BEST Friend

Facebook has quickly become my best friend. I vent to it, I tell it what I am doing, I tell it what I think is interesting, and I joke with it.  In exchange, it consoles me, encourages and inspires me, teaches me things, and makes me laugh.  

I have reconnected with long lost friends.  I stay in contact with friends I never seem to be able to "connect" with, because of differences in our schedules.  I even make new friends and business connections.

I like it so much that I currently have 3 pages....

My profile, where you will read things like me trying to give my kids away to a free home or find out where I can exchange my husband, you'll follow the happenings of my family and friends, and get to know me on a very personal level....Good, Bad, or Indifferent.

"The Real Estate Whisperer" which is a business "fan" page. It's newly launched, and named after my real estate blog.  I am still trying to build a following for it, but there I post things which are business related: My personal business like new listings, contracts, settlements, pictures of clients and the like; Things related to the real estate industry like initiates of REALTOR associations, changing tax laws, and other legislative issues relating to homeownership, or purchasing or selling property; I definitely post links to "The Real Estate Whisperer" blog, even re-circulating old posts that many haven't seen; And, to keep things light, I offer quirky insights and the occasional cartoon.

"Leesburg, VA"... this, too is technically a business "fan" page (although in hind sight it probably should have been a "group" page, and I would have named it "Living In Lo Co" but it's too late now).  Here, I post local and regional news.  You'll occasionally see links to my "LivingInLoCo" blog, but more often I post local news, upcoming events, reviews on local businesses....the content is similar to this blog, but more casual , more interactive, and a much quicker way to get news out - thus it is less words about more subjects. While I am still continuing to build this page, it is taking off quite well with viral marketing all on it's own.  As of last night, we had 907 fans in less than a month.

But, on Facebook as in life, it is not about what you put OUT into the world, its about how you fully interact.  I read the posts of others, "like" or comment on them, and genuinely participate in discussions.  I not only read the posts of my friends, but I have developed a coast to coast REALTOR network via Facebook, which helps me tremendously in my business.  I also get contributions from lots of groups and local businesses fed to my News Feed...so I say "in the know" about local happenings, events and issues that I care about (and I recycle this news as is appropriate).  In fact, this morning I took my kids to a new photographer.  One I learned about on the "Moms Like Me" fan page for my area. I am SO excited about seeing these photos.  My next post will include a video of part of the photo shoot - amazing fun for the kids.

Thanks, Facebook!

For more information, visit me on Facebook or subscribe to my blogs -just click on the links above! 

The Real Estate Whisperer "You'll Want To Know This"

Announcing "The Real Estate Whisperer" on Facebook!  

Interested in having important Real Estate News delivered to your FB Newsfeed?  CLICK HERE to "Fan" our new page!  We welcome any real estate questions!

Check out these recent highlights....

*  Buyers Who Wait, May Lose A Lot (Read this article from REALTOR magazine)
*  Switching gears, Obama is no longer focused on keeping homeowners IN their homes, but considering paying them to leave!
*  Tax relief for investors who chose the wrong 1031 company.\
*  The White House extends the refi program options for homeowners who are "under water".

Warning to Homeowners Doing Loan Mods

I keep hearing the same story over and over, and I've written about it before.... and it is breaking my heart.  Please don't be the next victim... Please avoid an unexpected foreclosure. 

If YOU are attempting a loan modification with your mortgage company, and they are sending you delinquent notices and tell you to "pay no attention" to those notices... do not believe them. 

Time and time again, homeowners are being told by their mortgage company that they (a) should stop paying their mortgage while they are applying for their loan modification (b) to pay no attention to the delinquency notices or default notices or warnings of an impending foreclosure.. and the loan mod department continues to ask for documents, information and more "stuff" from the homeowner.  All the while, the department that processes delinquents/foreclosures is indeed moving forward with foreclosure measures, and before you know it, the mortgage company forecloses on the property. 

In one case that I know of, the loan modification department asked for information to process the modification twice AFTER they'd already foreclosed on the home!

In another case, the loan mod department told the homeowner that their modification had been completed successfully, and reduced the payment... and then suddenly sent a letter saying that the full amount that was delinquent was due immediately or the home would be foreclosed upon 10 days later. Needless to say, another home was lost.

In still another case, a friend lost a home that had been in her family for generations when in fact she could have begged or borrowed funds from other family members to bring the loan current, had the loan modification department not told them that the loan modification was going through!

Please don't be the next victim. These stories are breaking my heart, especially when they happen to friends. 

An important note to this story -  Wells Fargo seems to be the name I am hearing most often associated with these kinds of stories, although it is certainly not the only bank. 

Some loan modifications are successfully approved, but VERY few... and of those, even less modify the loan enough to make the loan affordable.  You may be better off to consider a short sale. 

If you are in the Loudoun/Dulles area, and are considering a short sale, I'm pleased to offer you a free consultation to determine if that is a good option for you.

Vicky Chrisner * Real Estate Consultant

Keller Williams * Leesburg, VA

703-669-3142

VChrisner@KW.com

Other blog posts with short sale information:

Short Sales, Anything But Short

The Affect of a Short Sale on Your Credit Report

Buying After A Short Sale

Dr Seuss Reality Realty Quiz

Dr Seuss's Reality Realty QuizShare


In honor of Dr Seuss's Birthday, I've put together a real estate related quiz.... try your hand; then "Fan" The Real Estate Whisperer" on Facebook to get the answers which will be published tomorrow morning!

1. What were the name of the apartments where Jo Jo lived?

2. Where are you likely to find Sneetches?

3. Where does one celebrate their birthday?

4. Gerald McGrew fantasizes about catching a "big bug" that is said to fly between Texas and what city?

5. What is the name of the city "where they never have troubles, at least very few"?

6. Where is Stilt Walkers Hall located?

7. Where did the Grinch go to punder his Christmas Eve decent?

8. What is the name of the county from which the news of the Yawning Bug was received?

9. Where "on some dead ended road" does the narrator suspect he'll find himself if he followed the Spookish Hunt's suggestion?

10. What is the name of the traffic clogged road within G-Zayt?

Bonus: Who has been to the place in the picture and can tell me what it's called and where it is?