Some are asking well why not? Why is Fannie Mae and Freddie Mac not participating in or included in the Settlement?

The Settlement Does Not Apply to Loans Owned by Fannie Mae and Freddie Mac - These two Government Sponsored Agencies (GSE’s) agencies now own approx. 50% of all loans in the U.S. and up to 80% of all the subprime loans that are in the most trouble. This Settlement will provide no help for these homeowners. Even though Fannie Mae is under a Government Conservatorship, Fannie Mae actively opposes any principal reduction of its loans.

I am expecting that they are being excluded for a reason, maybe it is because the major banks were the leaders in this maze and they are getting slapped for their part. Plus it is not uncommon for Fannie Mae and Freddie Mac to have to their own programs - seperate from the big leaders in this mess.

None the less, I encourage all homeowners that are in trouble and feel that some help is better than none to go to your lender and see how they can help. I also advise you to file the same papers with the attorney general to be sure they uphold their end - lenders can be tricky. As we all know.

Homebuyers: I find this chart very handy on the different ways a buyer can consider holding title. One of the documents/ questions asked a buyer is how do you want your property vested? From the choices listed below – the buyer(s) will choose. This form and question will come from title during the escrow period and again at the closing/signing of documents.

Whether you are a married couple, married filing as separate property: or whether you are filing In common, Tenancy, community or survivorship you should know how each works before you make the decision. And always keep in mind that California is a 50/50 state!

Of course, this works for a homeowner that wishes to change the way they are presently holding title on their property. In the case of a change – a quitclaim deed would be required.

Have questions or just want to hear the explanation for each selection – ask your escrow officer - they are the experts in what each means … However, they will not be able to make the decision for you!

What are you doing this Sunday? Today is my day to visit a local mission with my fourth grader!! And one of her friends. Its amazing how things can age you - I do not recall having to do a 4th grade mission project. Of course, that was some years ago but now this is what is happening in the 4th grade. It is a huge project (to me) for fourth graders.

So we are breaking it down into parts and setting our sites on gettting it done. I know it does have its interest points.

While looking for information on San Juan Capistrano, I ran into this site that had the message in red:

"Why Are You Wasting Hours Online
Searching for Information for Your
Child's San Juan Capistrano Mission Project?
Is the Due Date Approaching?

The only thing is, the instructions from the teacher states we cannot purchase the mission model. Dang!!!

Our project mission is listed below. If you have any tips, facts or comments that you can share about this mission - please add a comment. Remember you're doing it for the good of a fourth grader!! And thank you in advance.

San Juan Capistrano

(so instead of open house today...)

its Mission tour day.

San Jose Mission here we come!

Had an incident with a flip property. The seller purchased the property at a steal of a price, did some fixing up and with each nail he must have been thinking that he could get more and more for that property --- and when he hammered that last nail and cleaned up the place - he was certain it was worth way more than what it was. So he set out to sell and not give in to anything lower than what he wanted.

When the appraisal came in -- it was lower than what this seller was asking for this property. OK he wasn't impressed with that appraisal and as you know with flips you must have 2 appraisals performed anyways. So the second appraisal came in low as well. He was so upset with the 2 appraisals - performed by two seperate appraisers. And he still would not come down on the price .... mind you we were in escrow at this time.

All I could see was "deal killer".... written in big bold letters. This seller forgot all about the fact that a property is only as vauable as the buyer thinks it is! Or at least what a buyer is willing to pay. New Horizon!

BTW: This seller was offering a $1000 bonus to the selling agent.... and at the end of the day, even that was lost to the negotiations to make close the deal. In the end, it was worth it in many ways because the buyer had a handicap and needed just this type of home and had been looking for over a year - so letting go of the bonus wasn't as painful as it could have been.

Now... I am leary of flip deals, especially if they offer a bonus that they are really calculating will be used up to make up the difference in the appraised value and what they are selling the flip for!!!! Sneeky and not funny trick.

What the heck does it take to HARP?

In no particular order, you should make sure that you fall within these lines in order to enjoy HARP possibilities.

• HARP mortgages are backed by Fannie Mae and Freddie Mac. Check out your mortgage to be sure:
• Only owned or guaranteed by Fannie Mae or Freddie Mac quality
• Only those mortgages that were securitzed prior to June 1, 2009 can apply for HARP
• Make sure your loan's PMI is not paid by your lender - its called LPMI (Lender Paid Mortgage Insurace); its built into your rate. So if it says LPMI - you do not qualify and if your mortgage statement shows PMI - you are ok on this point,
• OK here's a sticky one in these days and times - You must be current - at least the last six month mortgage payment must have been paid on time, with no more than 1 (30 day late payment) in the last year
• Make sure you have your paperwork in order (bank statement, driver license, homeowners insurance information, current paystubs and W2s (may need last 2 years). Income taxes for sure for the self employed, but have them just in case they ask

Fannie Mae Guidelines for HARP

Freddie Mac Guidlines for HARP

Homeowners, there is a New Horizon coming... get ready to be included - get yourself ready to try HARP and save your home.