Your Sacramento, Placer and Yolo County Real Estate Resource for West Sacramento Short Sale Information, Foreclosure Prevention, Bank Owned / REO questions and solutions
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.