Loan Modification Frequently Asked Questions
A Loan Modification is a permanent change in one or more of the terms of a Borrower’s loan, allows the loan to be reinstated, and results in a payment the Borrower can afford.
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203(k) Rehab Mortgage Insurance
Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.
What Is A Short Sale?
A short sale is a real estate transaction in which the sales price is insufficient to pay the debt(s) and obligations encumbering the property along with the costs of sale, and the seller is unable to pay the difference
Two California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Foreclosure Auctions
WASHINGTON—Two California real estate investors have agreed to plead guilty today for their roles in a conspiracy to rig bids and to commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
ADVANCE FEES FOR LOAN MODIFICATIONS NOW PROHIBITTED
Governor Arnold Schwarzenegger signed Senate Bill 94 (Calderon) which prohibits any person, including real estate licensees and lawyers, from demanding, charging, or collecting an advance fee from a consumer for loan modification or mortgage loan forbearance services. IF YOU ARE APPROACHED BY ANY PERSON REQUIRING UP FRONT FEES FOR THESE SERVICES DO NOT PAY THEM.
Underwater Mortgage Continue To Be A Problem
If CoreLogic’s statistics are anything to go by around 11.1 million households in the US (23.1 per cent of all mortgaged homes) were underwater in the October-December quarter. This means 10.8 million households, up from 22.5 per cent, during the July-September quarter. Although the number of underwater mortgages had fallen in the previous three quarters, it was largely due to more number of foreclosures. This has put many in a quandary, preventing them from selling their homes in an already weak housing market.
30 Year Fixed Mortgage Rates Dip
Last week saw a drop in the average interest rate on the 30-year fixed mortgage loan in the US due to lower yields on Treasury bonds. According to Freddie Mac, the interest rate on the loan dipped to 4.87 per cent from 4.95 per cent. Earlier in November 2010, it had hit a 40-year low of 4.17 per cent.
Good News And Bad News For Interest Rates
For those concerned that interest rates are going to jump up and kick off higher real estate prices, the NY Fed has a mixed message of hope and caution. The Fed expects interest rates to stay very low, at least in the short term. However, there might be changes coming down the line. The foreseeable future might just hold higher interest rates across the board.
FHA Loans Play A Key Role For Borrowers
FHA loans may be availed of by both first-time buyers and others who want loans for buying or refinancing their homes. It is worth noting that for refinancing a home it is not necessary that the current loan should be an FHA loan.
Positive News For Borrowers US Mortgage Rates Soften
Last week, mortgage rates in the US real estate market eased down, sending positive news to prospective borrowers. A recent survey of wholesale and direct lenders showed that 15-year fixed mortgage rates were at 3.88 per cent after two dips over the past week. On the other hand, 30-year fixed mortgage rates remained at 4.75 per cent. As for ARM loan rates, they also showed a dip of 0.13 per cent to the current 3.13 per cent. Analysts believe that with a 0.7-1 per cent origination fee, these are the best mortgage rates credit-worthy borrowers can avail of currently.