Debby Thompson- Homestead Realty REALTOR® Wisc

Trail loan modification

call your lender!!

Are you not sure what this is all about. For home owners that qualified for this program by having a Fannie Mia or Freddie Mac home loan. Put you into this program if you were have trouble with paying for your home.

So if you do not make the 3 payments that they have set up for you then you will not be able to be considered for the permanent modification.

What does this mean to the home owner.

When you get the packet from the lender you need to get on the phone with them and make your payment.

If you are still not able to make this payment, I would let the lender know. They may tell you that you need to try to sell your home. You then may have to sell it as a short sale.

Make sure that you understand what is going on. You may have signed loan papers that you did not understand. But ask questions until you understand. You will not get a second chance at this.

The government has a set amount they want done is a set time frame. So they will be pushing to get this done. Right now they have hit their goal and are 3 weeks early in doing so.

Remember if you can see that you will be able to keep up making these new payments let the lender know before you make your first payment.

This home was on the market for 11 days and we have an offer already. It was priced to sell and it went quick.

Now I have another one waiting for the next person waiting to snap up a deal

3931 N 24th St Milwaukee, WI 53206 this is a 2 bedroom 1 bath home listed for $21,546 It has a walk up attic ready to be expanded. It has a formal dining room an updated kitchen and bath. Will this one also be gone is a wink of an eye. This home too did not last. We have an offer already.

BUT here is a new one I just listed...

5940 W Appleton Ave Milwaukee, WI 53210 This is a 2 bedroom large eat in kitchen with formal dining room and updated bath. This home is price well below the assessed vale. Price to sell $24,900 assesses value of this home is $ 78,500. Side driveway and it also has a walkup attic to expand this home.

Call Debby at Homestead Realty To see this home or visit me on the web

Just want to let you know time is running out on the first time home buyers tax credit. Last night as we watched the nightly news and we heard the cash for clunkers is going. Could anyone believe it is gone already. Yes it is true. So don't sit on the side lines and watch this one go to.

Don't believe that it will get extended. It may not. So if you are really thinking of purchasing a home and you really want to buy. Don't think holding off we get you a better deal. It may not.

If the seller can go down on their price this is a good time to test the water. Back to school is just around the corner. And in the state of Wisconsin the leaves will be turning and snow will be falling, that is just around the corner.

So is it time to come together and think if is right for you. You may need a little time to understand the market and to find what is right for you and your goals. You may need to come together with someone else in making the right decision.

So don't wait and wonder where did it go.

Are we going on another wild ride? As the gas prices climb and so goes the interest rates on home loans. I have been working with buyers telling them that this interest rate would not last. Well guess what it has come true.

Big changes are on the way in the mortage industry:

"Where to start? Well lets start with the good news. Three day rescission for purchases is not part of HERA-HOEPA. There are RESPA changes coming down the pike (Sept?) but for the time being no rescission. We will take the small blessings.

Before getting into how our world is going to change I want to touch on the rising rates. Yes we could be at +6% very soon. We need to remember that 7% is historically a good rate. We have just gotten spoiled by the best rate rally in history. The Feds have stopped buying the low end of the MBS stack. The big question is why. Are they done subsidizing the mortgage market? (they still have $717b left of the $1.25 trillion they have set aside to buy MBS) Are they afraid inflation is about ready rear its ugly head? (12-20 months down the road) Are they waiting for the implementation of the next phase of the HARP program? Do they need the money elsewhere? The Feds are not saying so we will have to wait to see if the rally is truly over. The good news for purchase business is that the rise in rates will allow lenders to catch up their pipelines. Great that means quicker turn times you say. Not so fast young grasshopper HERA-HOEPA is coming.

What is this HERA-HOEPA? It is Bush era legislation passed in the beginning of the subprime crisis design to provide additional disclosures, waiting periods and protections to consumers which in theory is a good thing. (we are the government and we are here to help) It becomes law on July 30 for all lenders including brokers and covers all closed-end loans secured by real estate. Wells will be implementing/practicing the new procedures starting June 20th so that we can work out some of the bugs before the hard date of July 30th when a violation of HERA-HOEPA is a $10,000 fine. There are a series of disclosures that must be given to the customer along with several waiting periods with various trigger. In theory under HERA-HOEPA you could close a soon as 9 business days after initial application (I know the law says 8 days but this is government counting we are talking about where the first day is day 0). When combined with the new HVCC rules (which among other things prohibits contact with appraisers) realistically a 30 turn time would happen only if your stars are lined up. Going forward I would not be writing up offers with less than a 45 day turn.

One of the provisions of HERA-HOEPA is that any change to the APR within 5 days of closing of more than a 1/8 will require re-disclosure of a new TIL and trigger a new 4 day waiting period. Fees can not be collected until a week and a day after receipt of initial application in most cases. This will means that loans will not be locked or appraisals ordered until the 8th day after application. Appraisals will need to be sent to borrowers at least three days prior to closing. If a customer decides to make a change in their loan within 10 days of close, chances are the closing will be delayed.

In short, there are several triggers that will be outside either the loan officer's or the agent's control which could push back a closing date. This will be our new world that we will be operating in. We need to start education our customers and setting proper expectations. This will be a learning process for us all as we work through this." Craig A. Kramer

This is the email I received from one of my lenders. You can see how things are changing. So be perpared to understand more about getting a home loan.

Well did your buyers ever think that purchasing an exiting home would be going green. Yes it is. No trees will be cut down to build your home it is already there. The trees have already started to grow you have a lawn. No new streets need to be built. So how can you not only, help the world by going green but you can also help the housing market by buying a home that is waiting for a new owner. GO GREEN buy an exiting home.