HARP, HOPE and HELP!!!

Listen up … and you’ll hear it in conversations around the water cooler:

“I’m waiting for the Obama mortgage program before I refinance.”

“The President is gonna pay my mortgage.”

“I want an interest rate under two percent.”

Press releases, Presidential addresses and media hype have created a stir about homeowner assistance programs. The specific facts and details of eligibility are often left out, causing great confusion for homeowners and mortgage lenders alike.

To clear a few things up: there is no Obama mortgage program, and the President won’t be pulling out his personal checkbook anytime soon to pay your mortgage.

Looking beyond the smoke and mirrors, however, some programs do help homeowners in a variety of ways.

The Home Affordable Refinance Program (HARP) helps homeowners in lower equity situations refinance their mortgage. Requirements include verification of employment history, a minimum credit score and a record of timely mortgage payments.  Additionally, the mortgage must be owned or guaranteed by either Freddie Mac or Fannie Mae.

The Making Home Affordable Program (MHA) offers a broader strategy to help homeowners avoid foreclosure with loan modifications, lower monthly payments and more. This program can also provide relief for unemployed homeowners. However, even if you meet a variety of criteria for qualification, the program does not guarantee you will avoid foreclosure.

As of June 11, the new Federal Housing Administration (FHA) Streamline Refinance Program lets homeowners with FHA mortgages reduce their current interest rate with minimal underwriting requirements. The program does not require an appraisal of the property or verification of income, employment or credit score. Mortgage payment history must be current, and the FHA mortgage must have originated prior to May 31, 2009.  Unfortunately, if your FHA loan was originated June 1st, 2009 or later, you’re out of luck.

The media sells it well, but only a small percentage of individuals qualify for these programs, even though their launch generates a lot of headlines, especially during an election year. Still, with the housing industry encountering struggles before a significant rebound, additional opportunities could be in store from the government’s bag of tricks.

Have more questions?  Call me!

Guaranteed Home Mortgage is a Direct Lender licensed by the PA Dept. of Banking

Dan Ranck

Guaranteed Home Mortgage Company, Inc.

5513   Main Street

East   Petersburg,PA17520

Telephone 717-271-2400

Toll-Free 1-888-566-1795

Fax 1-888-275-8495

www.MyLancasterLender.com

dranck@ghmc.com

NMLS # 140989

Six Myths About Short Sales

A short sale can provide a great solution for homeowners who must sell
and owe more on their homes than they are worth. Unfortunately, myths about
short sales abound, and you must understand the facts before proceeding.

Myth #1: The Bank Would Rather Foreclose than Bother with a Short Sale

Banks prefer to avoid foreclosures because the process is costly. If a
person is qualified for a short sale, the deal most likely would be considered.
Some of the qualifications for a short sale include financial hardship and
over-equity situations.

Myth #2: You Must Be Behind on Your Mortgage to Negotiate a Short Sale

Not necessarily the case. If you meet any of the criteria mentioned
above, a short sale may provide your best option. Avoid waiting until you fall
behind on your mortgage because that could create additional complications.

Myth #3: There is Not Enough Time to Negotiate a Short Sale Before My
Foreclosure

This fallacy probably hurts homeowners the most. Foreclosure is a process,
and there is often time to achieve a better outcome.

Myth #4: Listing My Home as a Short Sale is an Embarrassment

In today’s challenging real estate market, about 15-to-20 percent of
American homeowners are underwater. Taking remedial action is nothing to be
embarrassed about.

Myth #5: Short Sales are Impossible and Never Get Approved

Although short sales do require a process, they are often feasible.

Myth #6: Buyers are Not Interested in Short Sale Properties

Many agents have buyers who are only interested in foreclosure and
short-sale properties, often just to get a bargain.

You can learn more about Short Sale Myths and realities by
consulting with mortgage and real estate professionals for expert advice,
whether you’re a buyer or a seller.

 

Have more questions?

Call me!

Guaranteed Home Mortgage is a Direct Lender licensed by the
PA Dept. of Banking

Dan Ranck

Guaranteed Home Mortgage Company, Inc.

5513 Main Street

East Petersburg, PA 17520

Telephone 717-271-2400

Toll-Free 1-888-566-1795

Fax 1-888-275-8495

www.MyLancasterLender.com

dranck@ghmc.com

NMLS # 140989

Short Sales – A “Short” Story

A former client emailed the following question:

“If a homeowner sells for $125,000, and the amount owed is $135,000, does the monthly mortgage bill go down, or does it remain the same until the full amount is paid?”

Wow, where to begin?

The nebulous world of short sales is filled with unanswered questions. Ultimately, the lack of a standard set of rules or guidelines makes every situation different. And that leaves many people without a clue, especially those with “underwater” homes who need to sell.

So regarding the email above, I responded by noting all liens/mortgages on the property must be satisfied and released before it can be sold. In that particular situation, the correct answer is none of the above. 

When a property is sold for less than the amount owed, it’s called a short sale. A short sale is generally negotiated with the current mortgage holder before a property can be sold. The terms of a short sale can vary in many ways. 

Sometimes, the bank holding the current mortgage will simply agree to accept a lesser amount and forgive the difference. However, the bank will first consider the current market value of the home, the mortgage balance and any fees or commissions in the sales transaction.

In other short sales, the seller may bridge the gap between the sales price and the mortgage balance though a lump-sum settlement or an ongoing payment plan. Once again, the bank and the seller must agree to all terms.

In today’s real estate market, short sales are occurring more frequently. The process requires an understanding of the options and their impact upon all parties. In some cases, sellers may benefit from hiring an attorney to protect their rights.

Have more questions?  Call me!

Guaranteed Home Mortgage is a Direct Lender licensed by the PA Dept. of Banking

Dan Ranck

Guaranteed Home Mortgage Company, Inc.

5513 Main Street

East Petersburg,PA17520

Telephone 717-271-2400

Toll-Free 1-888-566-1795

Fax 1-888-275-8495

www.DanRanck.com

dranck@ghmc.com

NMLS # 140989

Selling Your Home in 2011, Part II

Continuing from last week’s post — if you plan to sell your home this year, here’s some additional tips to facilitate a successful transaction.

Provide resources and information for prospective buyers. In addition to the seller’s disclosure documenting the age of the roof, mechanicals, etc., you should create a binder with other information such as average utility bill costs; available cable, Internet and phone services; nearby grocery stores and coffee shops; entertainment in the neighborhood; and any other valuable resources. Providing a floor plan with room measurements may also help prospective buyers visualize their furniture in your home.  The more information you provide, the more appealing your home becomes.

Be flexible with your showings schedule. Although it may seem like an inconvenience to you, buyers want to see homes on their own terms. Remember, you are competing with many other locations, so if you fail to accommodate, you may be passing up an offer. You should also offer an early morning or late evening showing, and your real estate agent should be able to reach you quickly in case of a last-minute inquiry. Keep your home clean and in show-ready condition at all times. As the saying goes, “You only get one chance to make a first impression.”

Be patient. Although you want your home to sell immediately, the average “days on market” has increased and varies by geographical area. Entrust the professionals you hire to sell your home and let them do their jobs.

Implementing these suggestions and listening to your real estate agent should help you achieve Success in Selling Your Home in 2011.

Have more questions?  Call me!

Guaranteed Home Mortgage is a Direct Lender licensed by the PA Dept. of Banking

Dan Ranck

Guaranteed Home Mortgage Company, Inc.

5513 Main Street

East Petersburg, PA 17520

Telephone 717-271-2400

Toll-Free 1-888-566-1795

Fax 1-888-275-8495

www.DanRanck.com

dranck@ghmc.com

NMLS # 140989

Selling Your Home in 2011, Part I

If you are planning to sell your home this year, you must remember it’s a buyer’s market out there, and, with many other homes on the market, getting yours sold could be challenging. Incorporating some of the suggestions below could help your home stand out from the crowd.

Make sure your home is priced to sell. Most sellers believe their homes deserve top-dollar, but ultimately, the current market dictates the price.

Overpricing a home turns prospective buyers away without fail. Compounding the error, a home priced too high may sit on the market longer and that can turn off buyers in itself by suggesting some other issue may be delaying the purchase.

The real estate agent listing your home should provide a comparative market analysis including expert guidance on a fair market price.

Prepare your home for marketing and advertising. Granted, your living area may not be ready for a public showing or a magazine shoot, but when you want it to attract attention, it should be. Staging your home so it reflects the greatest appeal to potential buyers will get it sold fast.

You should focus on organization, cleanliness and the concept of “less-is-more” as three major tenets to prepare your dwelling. Start by de-cluttering your living space, both visible and non-visible, then scale down the amount of furniture to make rooms appear even larger. Ask your real estate agent or even a professional stager for additional guidance in this area.

I will provide additional tips in Part II next week.

Have more questions?  Call me!

Guaranteed Home Mortgage is a Direct Lender licensed by the PA Dept. of Banking

Dan Ranck

Guaranteed Home Mortgage Company, Inc.

5513 Main Street

East Petersburg, PA 17520

Telephone 717-271-2400

Toll-Free 1-888-566-1795

Fax 1-888-275-8495

www.DanRanck.com

dranck@ghmc.com

NMLS # 140989