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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

Gilbert Real Estate Foreclosures

Buying a high value foreclosure at a low cost price is how savvy homebuyers purchase properties these days. Whether you intend to buy the home to live in yourself, to invest in it as rental, or flip and sell it for a profit, finding the right foreclosure can save you thousands, if not hundreds of thousands of dollars. Discover how to find a foreclosure in Gilbert, AZ and what you need to know before buying.


How to Find Foreclosures in Gilbert, AZ

Finding foreclosure homes and finding any important information about properties going into foreclosure can be the hardest part about buying this type of property. Often, larger investment companies are dialed in with their finger on the pulse of the foreclosure market and have a tendency to snatch up these properties before you ever knew they existed. These companies take the property and quickly renovate it then turn around and resell it or rent it out at a premium.


What the individual can do to keep from missing the best deals is to use the same tricks investment companies use to find homes – use the power of public records and a little digging. If you suspect a home in your area is going into foreclosure you can usually find out for sure by calling the bank; if the home is already in foreclosure you can find out by searching public records/tax records. Newspapers are also a very valuable research tool for finding Gilbert real estate foreclosures as they have weekly listings on these properties.


Deciding to Buy a Foreclosed Home

When you have found the home of your dreams at an unbeatable bargain in Gilbert, Arizona, you must act fast but proceed with caution. Many foreclosed homes in any area are not move in ready but that might be somewhat of an understatement. Unlike homes for sale by owners, properties in foreclosure are often not maintained to very high standards. The most the bank is likely to do to a foreclosed property is keep the house secure, and sometimes that’s not a top priority.


In addition to probably needing a good cleaning, inspect the house thoroughly before investing any money or time into the closing process. Foreclosed homes are often targeted in petty thefts and break-ins since they are not under the watchful eye of a private homeowner. Check for signs of common copper/wire theft by inspecting outdoor A/C units, electrical wiring – especially in the attic, and signs of damage to the walls. Otherwise, be on the lookout for tampering with entry ways or missing appliances before you make any offers. With a little wisdom and caution, you can find an amazing deal on foreclosures in the Gilbert real estate market.


“by Troy Reeves” at Google

How Soon After Foreclosure Can You Buy A New Home?

This is a question facing many homeowners who may be considering a “voluntary foreclosure” that is, to simply stop paying the mortgage and give up the home because of how much negative equity has been accrued, this is also known as a strategic walkaway. From their perspective, to continue paying a $375,000 mortgage on a home that’s now only worth $220,000, is simply throwing good money after bad.

University of Arizona law professor Brent White argues that so-called “strategic defaults” can potentially save homeowners hundreds of thousands of dollars and are morally no different from a business deciding to cut its losses on a venture. He argues this is really the only option.

whether or not it is the smart move financially, family’s will still need a place to live, and many will want to return to home ownership eventually, particularly those who gave up their previous homes as an economic choice, rather than out of necessity.

Five-year wait for Fannie, Freddie mortgages

If you lose your home to foreclosure, voluntary or otherwise, you won’t be able to qualify for a Fannie Mae or Freddie Mac conforming loan for at least five years and perhaps seven. Same for an FHA loan. Because conforming and FHA mortgages account for the great majority of home loans made in this country, particularly in the middle and lower price ranges, that’s a pretty big obstacle to overcome.

Of course, you can always seek a nonconforming mortgage, but those lenders will have their own guidelines for how soon they’ll lend after a foreclosure. They’ll also be likely to demand a 20 percent down payment and charge a relatively high interest rate.

A short sale or deed-in-lieu of foreclosure may be better strategies than simply allowing your home to go into foreclosure. With a short sale, you can qualify for a Fannie Mae/Freddie Mac-backed mortgage in as little as two years, and three years on a deed-in-lieu. And while both have the same impact on your credit rating as a foreclosure, your credit can begin to recover in as little as two years after any of them.

Credit impacts decline after two years

That’s not to say you’ll get a great interest rate after two years, but you can at least get a decent one. Of course, the full effect of a foreclosure, short sale or deed-in-lieu will remain on your credit for seven years, but the impact does begin to tail off significantly after the first two.

As for the effect on your credit score of a foreclosure or short sale, many mortgage advisers say you can expect a drop of 200-300 points, with the biggest drop for those whose credit was previously unblemished. However, much of that decline is due to the accumulation of missed or late payments that precede a foreclosure or late score.   Put the impact of a foreclosure or short sale by themselves at about 100-150 points.

If you’re faced with the possibility of losing your home, either involuntarily or as a deliberate economic choice, you’re probably better off pursuing a short sale or deed-in-lieu instead of simply allowing the property to fall into foreclosure. The effect on your credit score may be the same, but if you want to get back into home ownership within a relatively short time, either a short sale or deed-in-lieu will provide the quicker route back, provided your lender is agreeable to them.

Josh Coplan Explains New FHA Flipping Rules On The Front Page Of East Valley Tribune

Josh Coplan Front Page East Valley TribuneA recent policy change by the U.S. Department of Housing and Urban Development is encouraging flipping to foster more sales of foreclosure homes.   This is a major shift in policy, as the regulations until now required a home to be on the market for 90 days before a home could be flipped.

“Flipping” Coplan said, ” is when a house is bought and quickly resold for a profit.”  “Foreclosed homes, typically damaged like the one [pictured] here, are being bought, fixed up, and resold for substantial profits.”

Until now there have been seasoning requirements that do not allow a property to be resold for 90 days on some loan types.  The FHA which is a large part of mortgage activity taking place is valley has suspended the 90 day seasoning requirements for 1 year starting February 1st.

Last Month, foreclosure activity was up 4 percent from the previous month in the Valley, over one in every 100 houses received a foreclosure filing during January.  Phoenix had the second highest foreclosure rate among metropolitan areas  according to the latest report from Realtytrac.

The Valley was the only metro area among the top 10 to post a month-overmonth increase in foreclosure activity.  The anti-flipping waiver isn’t the solution to the foreclosure crisis, but it’s a step in the right direction, said Jay Butler, associate professor of real estate in the W.P. Carey School of Business at Arizona State University.  The waiver includes numerous safeguards to prevent inflated pricing, such as if the price of the home is 20 percent over the previous sale, the seller has to justify that increase, he said.

Josh Coplan has been in Real Estate for 6 years and is Certified in Short Sales & Foreclosures Resources(SFR).  We congratulate Josh for making it to the front page of the East Valley Tribune, and also congratulate the Tribune for their excellent selection.

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.