HARP Can it work for you?

I must have received a zillion calls and emails around the HARP announcement made by President OBama in Las Vegas this past week. We'll be talking about it on my radio show tomorrow on KFIV 1360 AM, Modesto Ca. Listen in at 10 AM.

As you all know, most of Stockton, Ca and Merced, Ca,well, literally 90% of our beloved Central Valley is underwater on value. Wouldn't it be wonderful if this HARP program made it possible for most of our neighbors and family to keep their homes? Absolutely!!

I don't have all of the info yet, but here are the criteria:
1. cannot have missed a payment in 6 months and must be current now
2. your loan must be Fannie Mae or Freddie Mac
3.there is no ceiling on how upside down you are
4. limited qualification to be accepted but no criteria yet on what that means
5. no principle reductions
6.reduces interest rates to new low

WHAT WE DON'T KNOW YET:
1. will it help if you have multiple loans on the property
2. do you have to be employed
3. is there a limit on price or value or can it help everyone
4. will all Fannie and Freddie lenders participate

Stay turned and posted for further info.

Home owners receiving loan mods are being viewed as short sellers by Fannie Mae!

Hey everybody,
I haven't verified this for sure as of yet, but this is some important information regarding loan modifications and their potential impact on your ability to purchase a home down the road.  Check it out and let me know your thoughts!

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Just when it seems sanity is returning to the lending industry….this gets dropped on us.

Homeowners receiving loan modifications for their primary residence (and noted on their credit report); are now being treated as short sellers by Fannie Mae…even if the homeowner was never late on their mortgage.

In other words: A responsible homeowner, who made their payments on time and received a loan mod for their primary residence will now have to wait three (at least) years before they can purchase their NEXT home (or refi their current residence).

The only exception to the rule: If a homeowner received a loan modification on an “investment property/second home” may receive financing on another property (primary residence only) on a case by case basis (underwriter’s discretion) within 2 years.

Here are the Fannie rules:

o Refinance transactions: On previously modified loans…refinancing is not permitted.

o New purchase transactions: When a borrower’s current residence (previous loan) was modified AND the property is being retained as a 2nd home/investment property…financing for another home…will NOT be permitted.

o New purchase transactions: ..When a borrower’s previous loan was modified AND the property is being sold…the borrowers loan application …should be treated with caution and reviewed for delinquencies and short payoffs.

o New purchases of 2nd home or investment properties: When a borrower’s current residence (owner occupied) has been granted a loan modification… financing for the next home will not be NOT permitted.

o Refinances where another property (not the subject property) has a loan modification should be reviewed with "caution" to ensure that there was no short refinance (treated as a short sale).

For more rules regarding the rules for short sale /foreclosure waiting periods please click here.

Daniel Dobbs
Sr. Mortgage Loan Officer
American Commerce Mortgage
Cell: 949 250-3981 Fax (714) 970-9777
Dandobbs6@gmail.com DRE # 00986886 …..NMLS# 307631