'Find Your Home' Category
Home Affordable Mortgage & Home Affordable Foreclosure Alternative Program Facts and Stats
April 17th, 2010 Categories: Find Your Home, Homebuyer Tax Credit, Market Trends, Mortgage News, Real Estate News
HAMP program – Home Affordable Mortgage Program for loan modification. This is where the home owner must start. 80% of loan modifications fail.
HAFA program – Home Affordable Foreclosure Alternative Program refers to the short sale process expedited.
HAMP starts with a phone call from the seller/borrower requesting the loan mod through HAMP. Only 20% of these requests actually get approved.
More Interesting Stats:
3 million Hamp program packages that have been sent to clients.
1 million loan mods in process. Which leaves 800,000 short sales coming up that are currently in the pipeline.
How much does the borrower’s credit get dinged by a short sale?
There is no benefit to your credit score in doing the HAFA Program.
“Vantage Score” – a new credit bureau reporting agency that a lot of lenders are now moving toward for scoring on loans. They did a survey on 400.000 clients and they broke them down into four groups of 100,000 borrowers each.
- group one – borrowers have perfect credit, then did a short sale.
- group two – borrowers are behind on their mortgage, but all the rest of their credit was good.
- group three borrowers – are behind on all credit, but the mortgage is great
- group four borrowers – trashed every part of their credit.
• On average, those in group one had their credit score drop between 110-140 points.
• Those in category number two had their credit score drop by an average of 75 points.
• Those in category number three had their credit score drop by an average of 40 points.
• Those in category four had their credit score drop by an average of 0-20 points and in some cases their credit score went up because it made their credit better.
A Foreclosure can drop a credit score by 200-300 points.
A Borrower could possibly qualify for a new loan in 2 years with a short sale Or 4 years with a foreclosure.
Currently 3.2 million homes are in foreclosure.
10 % of all loans are currently 60 days late.
30% of all homes are upside down and the number is expected to rise to 42% by end of 2010.
HAFA is not for Freddie Mac or Fannie Mae. They will, however, have a very similar program out soon.
Purpose of the HAFA program is to standardize the process
Forms.
Requirements.
There are some more requirements coming that you may not have seen yet, where the borrower could be required to make payment through the process to qualify.
SSA 7 page agreement.
RASS is the form you use to submit your offer and the service provider will need to respond to you within 10 days. If they turn your offer down, they must provide a reason as to why they turned it down.
There are ways that they can opt out of HAFA as well if it is not in their best interest.
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Top 5 Facts About The New Homebuyer Tax Credit
February 27th, 2010 Categories: 4S Ranch, Brookside Escondido, Del Sur, Escondido, Find Your Home, Homebuyer Tax Credit, Poway, Rancho Bernardo, Rancho Penasquitos, Real Estate News, San Diego, San Marcos, Santa Fe Valley
On November 6, President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009 into law, extending and expanding the important home buyer tax credit, and thereby providing many Americans with just the break they need to buy a first home or move up to a new home.
New Homebuyer Tax Credit
One of the requirements for becoming a Member of the Top 5 in Real Estate Network® is to provide my community with critical real estate information so you can make the best possible decision when buying or selling a home. To that end, I wanted to pass along some key facts about the extended and expanded tax credit that are critical for you to understand in order to take advantage of this opportunity:
1. Eligibility: The tax credit is now available for first-time home buyers and eligible current homeowners. A first-time home buyer is an individual who has not owned a principal residence during the three-year period prior to the purchase. This law applies for both parties in a married couple; if you haven’t owned a home for three years, but your husband has, then neither one of you can qualify for the tax credit. A qualified current homeowner who wished to move to a different home, must have owned and resided in their residence for five consecutive years out of the last eight.
2. Salary requirements: Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
3. Amount of credit: The maximum credit amount for first-time home buyers is $8,000; the maximum credit amount for current homeowners is $6,500. The federal tax credit amounts to 10% of the cost of the home, up to a maximum credit of $8,000 for first-time home buyers and $6,500 for current homeowners. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less. The tax credit is a true credit—it does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase.
4. It’s refundable: The tax credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if you owe no tax or the credit is more than the tax owed. The credit is claimed using Form 5405, which you file with your original or amended tax return.
5. Timeline. The credit is available for homes purchased on or after November 7, 2009 and before May 1, 2010. The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home (newly-constructed or resale, single-family detached, townhomes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed before May 1, 2010 will also qualify for the tax credit as long as closing occurs by June 30, 2010.
For more information on the home buyer tax credit, e-mail me or visit www.irs.gov. Please forward this email to friends and family who may also be able to take advantage of this unique opportunity to purchase the home they’ve always wanted.
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New Condos-Greatly Reduced in San Diego
December 24th, 2009 Categories: Downtown San Diego, Find Your Home, San Diego
It’s coming for the new year, the best pricing on remaining units at Solara Lofts, prices have been reduced already by up to $200,000. This community has been one of downtown’s success stories! Only 22 units remain- so you should act fast! There is really an urgency to buying today because it may not be there tomorrow! Click HERE For more information, or call the or visit the sales center :877-571-2289, 1551 Fourth st.
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