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Gilbert Homes Mortgage Borrowers to Get Reduced Payments

stay in your gilbert home

The start of July marked the beginning of relief for thousands of people who have been struggling to pay their  mortgage. Borrows of Gilbert Homes mortgages could get help getting back on track with their loan payments and save money in the process. Troy Reeves with the Troy Reeves Team has seen many homeowners able to recover from late mortgage payments already – making it easier to stay current with their loan or sell their Gilbert Homes properties and buy new. Learn about the new efforts to help homeowners who are struggling because they are behind on their mortgage payments of Gilbert Homes.

 

How Gilbert Homes Borrowers Are Getting Help

A new program known as Streamlined Modification Initiative is helping borrowers who have mortgaged backed by Fannie Mae and Freddie Mac. This program is intended to help borrowers of Gilbert Homes and other nationwide wide homes mortgages who are at least 90 days behind on their loan payments. The loan must be at least 1 year old and the borrower cannot be more than 2 years behind on payments.

 

These borrowers will behind to receive offers from lenders that will help to lower their mortgage payments. The Federal Housing Finance Agency, or FHFA, is the agency that oversees Fannie Mae and Freddie Mac – they have yet to release how many homeowners will receive mortgage payment modification offers, but the number is expected to be in the hundreds of thousands. Currently, around 1.1 million people are behind on their mortgage loans nationwide.

 

Why This is Better for Gilbert Homes Borrowers Than Programs of the Past

This process is set up to be easier for homeowners than previous programs set to help borrowers keep their homes. Unlike other similar efforts, this program will bypass filing any financial paperwork by the homeowners. Gilbert Homes borrowers and others from around the nation will get a three month trial period for the new payment until it becomes permanent.

 

Lenders will begin to lower monthly payments by extending the Gilbert Homes mortgage loan terms or reduce the interest rates. This program could equate to big savings for people who have high rate loans or those who haven’t qualified for refinancing to lower rates.

 

“by Troy Reeves” at Google

Re-Entering the Market After a Short Sale? Let Us Help!

short sale gilbert az

When Can I Buy A Home After a Short Sale?

 

Back in 2009 and 2010, Arizona was hit with the opposite of a housing boom. Gilbert residents found themselves without a job, and without the means to make their mortgage. It was a hard time for the country, and our Gilbert families suffered, as did the housing market. But, because of the 2 to 3 year window that short sale home owners are required to wait, and the recent surge in the economy, Gilbert residents are finding their way back into the house market.

 

With that said, let’s take a look at the basic requirements for applying for financing after a short sale:

 

3 Years – If you’re looking to secure an FHA loan, one of the more popular loans here in Gilbert, you’ll need three years to pass since the short sale of your previous home. This period is called seasoning,

 

2 Years – Fannie Mae and Freddie Mac require a minimum of two years from the short sale of your home, as well as a 20% down payment. If you’re looking for a conventional loan, or similar loans, from these large lenders but don’t have 20%, you can wait a total of four years from your short sale and put down 10%. If you wait a total of seven years you’ll be able to put down less than 10%.

 

2 Years – After a short sale, you must wait 2 years before applying for a VA loan.

 

3 Years – All USDA loans require three years after your short sale.

 

Now, as with everything there are exceptions to the rule. If you worked with The Reeves Team from the very beginning on the short sale of your Gilbert home, and you have a strong paper trail showing that the short sale was due to ‘extenuating circumstances’ such as a death, divorce or disability, you might be able to beat the window and obtain funding early.

 

Above all, when buying a home after a short sale you will need the cash to prove that you are financially capable of not only affording the purchase price and closing costs, but the monthly payments as well. The best case scenario accounts for you having 30% for a down payment.

 

Ask the professionals at The Reeves Team about short-term, private lending. This lending is extremely popular for short sale loans, and in most circumstances your loan will become purchased by a much larger bank within a few years.

 

You do have options if you’ve experienced a short sale here in Gilbert. Your best bet, talk to an expert who has ample experience with short sales in Gilbert on both sides of the fence – from selling to buying. Give us a call today for more information.

 

“by Troy Reeves” at Google

Fannie Mae and Freddie Mac To Overhaul Short Sale Process

New Fannie and Freddie Short Sale ProcessBreaking news in the real estate community. This week Gabrielle Harrison the VP of REO sales for Fannie Mae, and Ingrid Beckles the Default Asset Manager at Freddie Mac announced an overhaul to the short sale process at the two companies.

A crowded room at the 5 Star Conference this week erupted as Gabriele Harrison announced that Fannie Mae will be using asset management companies to handle their companies short sale requests in the future. Fannie Mae, the single biggest player in the mortgage market, will be informing clients that they will need to work with asset management companies when “short selling” their property.

An asset management company acts as a middle man between the banks that own the mortgage and the client that is trying to short sale the property. Asset management companies are already big players in the Foreclosure market, but up until now have not worked with short sale properties. The change that Fannie Mae and Freddie Mac are making should have some positive effects. Because most major banks use them for their foreclosed on properties, making the shift to Short Sale homes should be fairly straightforward. Using one company for all short sales will also streamline the process and speed up the time it takes for a client to short sale their house.

However, the new process is not great news for everyone. Since the housing collapse in late 2006 real estate agents have struggled to stay afloat, many agents have turned to short sales and working with distressed properties to help them stay afloat during the down market. When Fannie and Freddie start working exclusively with the asset management companies they will essentially be cutting out these agents. Fannie and Freddie currently own roughly half of the mortgages in America, if other big banks follow the lead small real estate agents will be all but cut out of the picture.

Details on the short sale process are still to come. We have put in calls to Mrs. Harrison (Fannie Mae) and Mrs. Beckles (Freddie Mac) however they were both unavailable for comment. We will keep you up to date on all the new developments as they come. We are still doing research but thought this information was worth sharing even in its primitive state.

For Many, The Time Time to Buy an Investment Property Is Now

The housing market in the greater phoenix area is turning many homeowners into investors.   The chart below shows that phoenix is currently ranked 3rd in the number of homes sold in the last 9 years.  This is a telling sign of what many investors already know, the inventory levels of homes priced at $350,000 and below are getting low.

Rank Year Number of Sales
#1 2005 54,142.00
#2 2004 48,067.00
#3 2009 45,053.00
#4 2006 40,264.00
#5 2003 39,225.00
#6 2002 33,469.00
#7 2001 32,254.00
#8 2007 32,105.00
#9 2008 26,936.00

Other than the low prices compared to previous years there are more reasons people are choosing to buy investment properties.

  • Buyers are seeing opportunities to make their rental properties “pencil”.   In other words they can rent out their investment home to someone for as much or more as it costs them to maintain the property(mortgage payment, HOA, insurance, etc).  Being cash positive allows investors to make their second home not only an investment but also another source of income.
  • There are multiple private money funds of $1 – $300 million that are buying up 1-10 homes per day in the greater phoenix area.  These are cash buyers investing smart money back into the AZ real estate market.  This is lowering the inventory and will in turn drive up prices.
  • Many smaller investors are following the smart money and buying homes in the phoenix market.  While they may not be cash buyers lending practices have eased slightly and investors with 20% down are finding it much easier to finance.

Because of the still stringent lending conditions it is tough to finance a house unless you are a cash buyer.  It is important to select an agent that has experience with investors when choosing someone to represent you.   The bottom line is that while inventory is drying up due to the increase in home sales, it is a great time to buy an investment home at a low price with a low interest rate.

Waiting For The Bank To Respond

Another topic of discussion lately in the real estate world is “Why do banks take so long to respond?” If you’re an agent or a waiting prospective buyer, you either already know that it may take one, two or even three weeks (or months) for the bank to respond to your offer or you’re about to get an education.

Unfortunately these days, this is neither unusual or unexpected…almost considered standard practice. Having put in an offer in on an REO (Real Estate Owned aka Bank Owned property) about three weeks ago, Troy Reeves finds himself in the same position, wondering the same thing. “Why do banks take so long to respond?” Troy and The Reeves Team are experienced real-estate-owned agents who have worked with small and large banks in getting responses to offers. So, while having lunch the other day, we brainstormed some ideas as to why the process length seems to vary:

1) The Asset Management Company (who has been hired by the bank to handle the sale of the property) has been given strict instructions to hold any offers for a minimum number of days.

2) The Asset Management Company has been instructed to hold all offers until a minimum number of offers have been received.

3) The Asset Management Company has been given strict instructions to hold all offers until the end of the month, end of the quarter or end of a fiscal year.

4) Sheer Volume – Consider the stacks of paperwork that one Asset Manager deals with and is responsible for processing; then consider the number of signatures (approvals) that may be required to advance the purchase process.

5) The offer has been approved by the Asset Management Company and then requires a secondary approval by the Investment Group (that purchased the loan previously). Take into consideration that this group may only meet once a month. If this is the case, an additional 30 days could be added on to the waiting period.

Perhaps just the sheer volume of foreclosed homes on the market is overwhelming. Certainly the banking industry could not have been prepared for this influx – even with advance notice. Is there a solution? The bank’s first solution was the moratorium. The period of time that the banks “held” off on putting any new properties on the market. What did this waiting period accomplish? If the intent was to slow down the fall of property values, perhaps it did help accomplish just that. While the prices are not exactly where they were before the 2005-2006 housing boom, at least we’re hopeful that the downward spiral has slowed. While it may be too soon to tell, for now, we’re all in this together … waiting.

What you need to talk to your lawyer about when considering a short sale

shortsalesShort sale, it may be the most used word in real estate in 2009, but some times a real estate agent may not be enough and you may need to talk with a lawyer. A short sale is just one of the tools you can use when you are struggling with a mortgage.

I found an article over at RISMedia that talks about some things homeowners need to do so they are not taken advantage of during a short sale. It was good enough that I thought I should share it with you. You can read the whole article here.

Here is the articles list of the top 10 questions to talk over with your attorney when you are considering a short sale:

1. What is a better or more likely outcome for me and why?
– A short sale or a repayment plan?
– A short sale or a forbearance plan?
– A short sale or a loan modification?
– In the case of an FHA loan, a short sale or a partial claim?
– A short sale or a short sale/assumption agreement?
– A short sale or a deed-in-lieu of foreclosure?
– A short sale or a bankruptcy?
2. How do I know if my property and I may be considered for a short sale?
3. How would I initiate the short sale process?
4. Which process has a more adverse effect on my credit rating: short sale, foreclosure, bankruptcy, or deed-in-lieu of foreclosure?
5. What types of hardships would a lender generally consider favorable toward my appeal for short sale consideration?
6. On average, how long does a short sale process take?
7. What are the tax implications of a short sale?
8. If a lender agrees to the short sale option on my property, can the bank still proceed with a foreclosure?
9. Is there a real estate commission paid in a short sale? If so, who pays it?
10. When is a bankruptcy preferable to a short sale or to a foreclosure?