Your Sacramento, Placer and Yolo County Real Estate Resource for West Sacramento Short Sale Information, Foreclosure Prevention, Bank Owned / REO questions and solutions
Call 888-317-9376 Today for Your Free No Obligation Consultation. Call Me today and Sleep Better Tonight
To qualify for the
program you must meet certain minimum requirements including:
Gross Monthly income less than 120% of the Affordable
Housing Costs (AHC) for your county – Sacramento is just under $92,000 for
a family of four.
The property must be owner occupied.
You must have adequate income to sustain the modified
payment.
You must be delinquent or at risk of imminent default.
Must have a verifiable financial hardship and
The new payment cannot exceed 38% of your gross monthly
income.
There are a couple of
other qualifications such as the original loan had to be originated before January
1, 2010 and that loan had to be less than $729,750 but those are usually not an
issue. To be sure, give me a call and we can discuss your current situation.
Chances are a West Sacramento Short Sale might make better
sense if you do not qualify.
US Bank now also
participates in Keep Your Home California’s other three programs
including Unemployment Mortgage Assistance, Mortgage Reinstatement Program and
the Transition Assistance Program. We can help you with all four of the
programs or contact KYHC direct – whatever works best for you.
When the Keep Your
Home California Principle Reduction Program rolled out a couple
of years ago the servicers that participated in the program were required to
contribute at least 50% towards the reduction. Well as most of you know that
changed a while ago so that now those servicers and investors that participate
are no longer required to contribute. So what does this mean to you? Well, if
you meet the minimum guidelines of the program and your servicer & investor
participate in the program you can receive a principle reduction on your loan
of up to $100,000. Guys – that’s huge. Now it’s true not all servicers
participate and there are hoops to jump through including having an income
lower than 120% of the Adjusted Housing costs (AHC) for your county – in West
Sacramento that’s just under $92,000 for a family of four, the property must be
owner occupied, the loan must be delinquent or at risk of eminent default and
your current monthly mortgage must be more than 31% of your gross monthly
income to name a few, but if you do qualify and stay a minimum of five years,
you don’t have to pay the money back! Up to $100 Grand – that’s some serious
money. Hey, give me a call and we can discuss your particular situation and see
if your lender participates. Who knows, a West Sacramento Short Sale might be a better
option.
Hey, great news for
those with Wells Fargo loans that are in the middle of
a West Sacramento Short Sale or Deed in Lieu
of Foreclosure and did not previously qualify for relocation assistance. Wells
Fargo has recently signed up for the Keep Your
Home California Transition Assistance Program (TAP). With TAP
the qualifying homeowner can receive up to $5000 at the close of escrow when
they short sale their home. Previously if you did not qualify for HAFA chances were good you would not get
relocation assistance from Wells
Fargo – it all depended on who the investor was. FHA is one that comes to mind. They only
allow $750 - $1,000 for relocation assistance. Now through Keep Your
Home California you should be able to receive additional
assistance. Naturally for an FHA loan the Dept. of
Housing & Urban Development (HUD) will have the final say,
but there should be no reason for them to decline the assistance.
To qualify you must make
no more than 120% of the Affordable Housing Costs (AHC) for your county – in
Sacramento it is just under $92,000 for a family of four, the property has to
be owner occupied as their primary residence and are delinquent or in eminent
danger of default. There are a couple of other stipulations but those are the
biggies. Give me a call to see if you qualify or to see if a West Sacramento Short Sale is Right for you.
The great folks over at Keep Your
Home California recently announced that Bank of America has signed up for their
Principle Reduction Program (PRP). Now they have been on the list for a while
but it was always with an asterisk and you could not apply directly though Keep Your
Home California. Well that has all changed. If you have a Bank of America loan and you qualify for the
program you can now apply directly through Keep Your
Home California. The program is pretty straightforward. You have to
meet the requirements for a HAMP modification, make less than 120% of
the Affordable Housing Costs (AHC) for your county – Sacramento is just under
$92,000 for a family of four, you must have a true hardship, have adequate
income to sustain the new payment, you must be delinquent or at risk of
imminent default, and the new payment cannot exceed 38% of your gross monthly
income.
Guys – this should help
a lot of families that truly need the help. Give me a call and we can discuss
your current situation and confirm if you qualify for the program. If not a West Sacramento Short Sale might Right for
you.
If your situation has
become unmanageable, the thought of leaving your home may be overwhelming. You
simply can’t afford your mortgage payments anymore, but don’t want to leave
your neighborhood, take your kids out of school or find a new place to live. The
Deed-for-Lease option may be a good solution—you can avoid the foreclosure process while still being able to remain in
your home.
What is Deed-for-Lease?
The Deed-For-Lease™
option is a program from Fannie Mae that allows you to lease your
home after you have transferred the title to your property to the mortgage
company (commonly called a Deed-in-Lieu of Foreclosure). The lease terms are
up to 12 months (with the possibility to extend longer). And the monthly rent
is based on the current rental rates for your area—not on your original
mortgage payment.
Deed-for-Lease is an
alternative to foreclosure and may be an option if:
You are several
months behind on your mortgage payments
You may owe more
on your home than it’s worth
You have not been
able to sell your home
You want to
remain in your home and neighborhood
Find out who owns your
loan
Deed-for-Lease is
available for loans owned by Fannie Mae.
What are the benefits of
a Deed-for-Lease?
Eliminate or
reduce your remaining mortgage debt
Resolve your
delinquency and avoid foreclosure
Stay in your
home and neighborhood—no need to move or relocate
Lease at current
market rate rent for up to 12 months with a possible option to extend the
term
Pay no security
deposit
Assistance for
relocation may be available at the end of your lease
Start repairing
your credit sooner than if you went through a full foreclosure
May be able to
get a Fannie Mae mortgage to purchase a home
sooner (in as little as 2 years) by executing a DIL than if you went
through foreclosure (at least 7 years)
How does it work?
If your loan is eligible
for Deed-for-Lease,
1. Your mortgage must be
owned by Fannie Mae
2. Your mortgage company
will refer you to a property management company that will inspect your property
and review your financial information
3. You will sign a lease
agreement (if you qualify for the program)
5. Your lease becomes
effective once the DIL is complete / accepted by Fannie Mae
6. You will remain in
the property according to the lease terms paying monthly rent
7. The property
management company will manage the property and collect the monthly rent
Next steps
Gather your financial
information—Make sure you have your basic financial and loan information on
hand when you call your mortgage company. You’ll need:
your mortgage
statements, including information on a second mortgage (if applicable);
your other
monthly debt payments (e.g., car or student loans, credit
card payments);
and
your income
details (paystubs and income tax returns).
Explain your current situation—Be
ready to outline your current hardship and explain why you are having trouble
making your mortgage payment, why this is a long-term problem and why you are
wanting to transfer ownership of your home and lease it back. Your mortgage
company will need to understand the reasons why you are having difficulty in
order to find the right solution for you.
Many homeowners have
fallen behind on their mortgage, and could soon be on the path to foreclosure
without permanent help. If this sounds like your situation, you may be eligible
to modify your mortgage. You may also qualify for the government’s Home Affordable Modification Program, which was
designed to help borrowers make their payments more affordable.
What is a Modification?
Under this option, you
reach an agreement between you and your mortgage company to change the original
terms of your mortgage—such as payment amount, length of loan, interest rate,
etc. In most cases, when your mortgage is modified, you can reduce your monthly
payment to a more affordable amount.
How does it work? A
modification involves one or more of the following:
Changing the mortgage loan type (e.g., changing an
Adjustable Rate Mortgage to a Fixed-Rate Mortgage)
Extending the term of the mortgage (e.g., from a
30-year term to a 40-year term)
Reducing the interest rate either temporarily or
permanently
Adding any past-due amounts, such as interest and
escrow, to the unpaid principal balance, which is then re-amortized over
the new term
Next steps
Gather your financial
information—Make sure you have your basic financial and loan information on
hand when you call your mortgage company. You’ll need:
your mortgage statements, including information on a
second mortgage (if applicable);
your other monthly debt payments (e.g., car or student
loans, credit card payments); and
your income details (paystubs and income tax returns).
Explain your current
situation—Be ready to outline your current hardship and explain why you are
having trouble making your mortgage payment and if this is a short-term or
long-term problem. Your mortgage company will need to understand the reasons
why you are having difficulty in order to find the right solution for you.
Are you in a situation
that requires special consideration for the difficulties you are experiencing,
such as a recent job loss or reduced income? Many times, homeowners simply need
short-term payment relief to get back on their feet. A Forbearance may be an
option.
What is a Forbearance?
With this option, you
and your mortgage company agree to temporarily suspend or reduce your monthly mortgage payments for a specific period of
time. This option lets you deal with your short-term financial problems by
giving you time to get back on your feet and bring your mortgage current.
Forbearance reduces your
monthly mortgage payment—or suspends it completely—during the forbearance
period. If you qualify for forbearance, you and your mortgage company will
discuss the forbearance terms:
length of forbearance period,
reduced payment amount (if the payment is not
suspended), and
the terms of repayment.
After the forbearance
period has ended, you will need to repay the amount that was reduced or
suspended. However, there are a few options available if you qualify— making a
one-time payment for the amount due (reinstatement); adding a specific amount
to your payments each month until the entire amount is repaid (see Repayment Plan for more information); or
moving the delinquent payments to the end of your mortgage, which will lengthen
the term (see Modification).
Next steps
Gather your financial
information—Make sure you have your basic financial and loan information on
hand when you call your mortgage company. You’ll need:
your mortgage statements, including information on a
second mortgage (if applicable);
your other monthly debt payments (e.g., car or student
loans, credit card payments); and
your income details (paystubs and income tax
returns).
Explain your current
situation—Be ready to outline your current hardship and explain why you are
having trouble making your mortgage payment and if this is a short-term or
long-term problem. Your mortgage company will need to understand the reasons
why you are having difficulty in order to find the right solution for you.
If you are having
trouble with your mortgage payments because of past due
amounts and mounting late fees, you may feel like you can’t catch up. To help
get you back on track, you might be eligible for a Repayment Plan.
What is a Repayment
Plan?
With this option, you
spread out your past due amount—added on to your current mortgage payments—over
several months in order to bring your mortgage current.
If you qualify for a Repayment Plan, typically your
past-due amount will be spread out over a set time frame (e.g., 3, 6, 9
months) and added on to your existing mortgage payments. Other repayment
terms may also be available during the repayment period (check with your mortgage company for details on your
specific options).
Your mortgage company may have you sign an agreement
that will outline how you are going to repay your past-due amount, such as
the length of the repayment period and the specific terms.
Next steps
Gather your financial
information—Make sure you have your basic financial and loan information on
hand when you call your mortgage company. You’ll need:
your mortgage statements, including information on a
second mortgage (if applicable);
your other monthly debt payments (e.g., car or student
loans, credit card payments); and
your income details (paystubs and income tax returns).
Explain your current
situation—Be ready to outline your current hardship and explain why you are
having trouble bringing your loan current, and whether this is a short-term or
long-term problem. Your mortgage company will need to understand the reasons
why you are having difficulty in order to find the right solution for you.
Mike Rigley Certified Default Advocate,
Distressed Property Expert and your short sale specialist here thank you for
joining us. Today we continue our “Ways to Stay in Your Home” series as
presented by Fannie Mae on their Know Your Options website. Let’s talk about
refinancing.
If you are worried about
an adjustable rate mortgage and variable interest rates increasing your
payment, or if you are just beginning to have payment problems, you may be able
to Refinance.
What is a Refinance?
With this option, you
receive a completely new mortgage with new terms, interest rates and monthly
payments. The new loan completely replaces your current mortgage and may lower
your payment, which could help improve your monthly financial situation.
Refinancing may be an
option if:
You are current on your mortgage payments
If you haven’t been late on your mortgage payment in
the last 6 months, you may also qualify for the government’s Home Affordable Refinance Program
You have an adjustable rate mortgage or a high interest
rate
Make your payment more affordable by lowering your
interest rate or adjusting the other terms of your loan
Creates no negative activity or event on your credit
history
Stay in your home and avoid foreclosure
How does it work?
If you qualify to
refinance your mortgage, you’ll go through an application, approval and closing
process (similar to when you got your original mortgage). Your mortgage company will work with you
through every step, and will help determine the best mortgage option for your
specific needs.
Next steps
Gather your financial information—Make sure you have
your basic financial and loan information on hand when you call your
mortgage company. You’ll need:
your mortgage statements, including information on a
second mortgage (if applicable);
your other monthly debt payments (e.g., car or student
loans, credit card payments); and
your income details (paystubs and income tax
returns).
Contact a mortgage company— Tell them you are
interested in Refinancing and you want to see if you qualify. If you need a
good referral call us and we’ll be happy to supply the names of some great
lenders. We hope this helps
This week we are
bringing you a series detailing your options to avoid foreclosure and stay in
your home courtesy of the Fannie Mae help Site KnowYourOptions.com.
Fannie Mae suggests
that if you are facing financial difficulties—whether they are short or long
term—start exploring your options today.
Even if you haven’t yet
missed a mortgage payment, but are worried you might fall behind soon, now’s
the time to take action. You may be eligible to refinance or modify your
mortgage loan, lowering your payment and making it more affordable.
Or, if you’ve missed
payments and find yourself buried under late fees and past-due amounts, you may
qualify for a temporary (or permanent) solution to help you get your finances
back on track and avoid foreclosure.
Here’s an overview of
possible options to help you stay in your home and avoid foreclosure:
· Refinance
· Repayment Plan
· Forbearance
· Modification
· Deed-for-Lease™
Over the next few
sessions we are going to discuss each option at length.
The fast answer is
nothing. That’s right, all real estate commissions, escrow fees, title
insurance and other related closing costs are paid for by others. When I say
others I mean either by the bank or the buyer.
Now let’s qualify that
for a minute. While it is true the bank pays the commissions and most of the
closing costs the seller remains responsible for some costs during the
transaction. As a rule banks are reluctant to pay for unpaid or past due
utility charges that are not a part of the tax bill. They also push back pretty
hard on HOA fees and other related expenses.
What we require from our
sellers is for them to remain current on the county utilities – water, sewer
and garbage as well as the HOA fees. If doing so is an extreme hardship we work
out other arraignments.
We also ask the seller
to maintain the property especially if vacant. Mow the yards, take out the
trash but for the most part that’s it.
Think about. In a West Sacramento Short Sale, if you choose to not
make a house payment during the process, you have the opportunity to live rent
free for 4-6 months, often longer, walk away from all the of debt and your only
expense is HOA fees, utilities and keeping the property maintained. If you owe
more than your home is worth it just makes sense to explore your options.
