Here's is some information passed along to me from a friend in the mortgage business regarding the Federal Governments new Loan Modification program:
The Obama Administration unveiled the final details of its "Making Home Affordable Program," which is designed to help up to 9 million American families refinance or modify their loans to a payment that is affordable now and into the future.
One of the initiatives in this program is aimed at helping struggling homeowners "modify" their loans to avoid foreclosure. Here are some common Questions and Answers about the Modification Initiative in the program.
MODIFICATION INITIATIVE
Who is eligible?
To apply for a Home Affordable Modification, you must:
If you answered YES to all of these questions, you may be eligible for the Modification Initiative.
Am I eligible if I missed some mortgage payments?
Yes. If you missed two or more mortgage payments and answered "yes" to the Modification Initiative requirements above, you may be eligible for a loan modification.
Do I need to be behind on my mortgage payments to be eligible for a Home Affordable Modification?
No. Responsible borrowers who are struggling to remain current on their mortgage payments are eligible if they are at risk of imminent default. Examples of being "at risk" include facing a significant increase in your mortgage payment or a reduction in your income. Contact me to discuss your specific situation.
I have a second mortgage. Am I still eligible?
Yes, but only the first mortgage is eligible for a modification under this specific initiative. Contact me for details on how to modify your second mortgage.
I have an FHA loan. Can it be modified under this program? Are all loans eligible?
Most conventional loans including prime, subprime, and adjustable loans; loans owned by Fannie Mae and Freddie Mac as well as private lenders; and loans in mortgage backed securities are eligible for a modification. Contact me to discuss your specific situation.
I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?
Yes. Mortgages on two, three and four unit properties are eligible as long as you live in one unit as your primary residence.
What does the Modification Initiative do?
If you are eligible for this plan and are approved, you will be put on a trial modification for three months at a new interest rate and payment.
If you successfully make the payments and are current at the end of the three-month trial period, your servicer will execute a permanent modification agreement that will lower your interest rate to a fixed rate for five years.
What happens after five years?
Beginning in year six, the rate may increase no more than one percentage point per year until it reaches the "rate cap" in your modification agreement, which is basically the market interest rate on the date the modification is finalized.
That means your rate can never be higher than the market rate on the day your loan is modified. This is great news because rates are currently at historic lows... and you can lock in now.
How low can my interest rate go?
The Treasury is providing incentives to your lender to write the interest down as low as 2%, if necessary to get to a payment that you can afford based on your income.
What happens if that is not enough to get to an affordable payment?
If a 2% interest rate is not enough to bring your payment down to 31% of your gross monthly income, your servicer can extend your payment term--for example, give you a 40-year loan rather than a 30-year.
If that is still not sufficient your servicer will defer repayment on a portion of the amount you owe until a later time. This is called a principal forbearance. A portion of the debt could also be forgiven. This is optional on the part of the investor. There is no requirement for principal forgiveness.
Are there any other benefits to this program?
Yes. For every month you make a payment on time, Treasury will pay an incentive that reduces the principal balance on your loan. Over five years the total principal reduction could add up to $5,000.
How much will a modification cost me?
There is no cost to borrowers for a Home Affordable Modification. You will not be asked for any money by your lender. However, you may not want to "go it alone." Please contact me for information on affordable resources designed to assist you with your loan modification. After all, you only get one chance to do this right.
If there are other costs associated with the modification--such as payment of back taxes--your servicer will add those costs on to the amount you owe. Your servicer will also forgive any late fees.
Is housing counseling required under this program?
Borrowers are strongly encouraged to contact a HUD-approved housing counselor to help them understand all of their financial options and to create a workable budget plan.
However, housing counseling is only required for borrowers whose total monthly debts are very high in relation to their incomes (55% of your gross monthly income).
If you would like to speak to a housing counselor, call 1-888-995-HOPE (4673).
How do I apply for the Modification Initiative?
We have excellent tools available for you to assist you in putting together a Loan Modification request. Please contact me for details.
My loan is scheduled for foreclosure soon. What should I do?
If your mortgage has been scheduled for foreclosure or if you have missed one or more mortgage payments, should contact your servicer immediately.
You may also want contact a HUD-approved housing counselor by calling 1-888-995-HOPE (4673).
As always, if you have any questions or would like to discuss how this may specifically impact you, I'd be happy to help. Just call or email me any time.
Jon Littlefield, CMPS®
Certified Mortgage Planning Specialist
Cell: 480.703.0512
Fax: 800.954.0780
"You're at Home Here"
I've had several of my friends who haven't joined Facebook or Twitter yet contact me recently wondering how Social Media can help them in their business. Basically, what's the point? Well, I remember people asking that same question about 12 years ago when the internet was just coming into its own. Seems a bit silly now, doesn't it? The best way I can answer the question is this: The world is changing right before our eyes faster than we can even imagine. It's become connected and transparent. I think that most of you can admit that a static Rolodex or address book has been replaced with electronic versions like Outlook, Blackberry, etc. Now these databases are being replaced with Facebook, Twitter, LinkedIn, MySpace, YouTube, blogs, RSS Feeds, et al. Basically, Social Media has transformed your address book from a place where you keep your contacts to a place where your contacts keep you. (Damn, that's good - I'll need to post that on Twitter!)
Social Media is an interactive, multi-faceted, global database where everybody can learn and share from everybody else. You can find your own balance as to how much you want to share or observe. Don't you think it would be great that if all of your friends and clients shared their greatest successes as they happened and you could congratulate them in real time? Do you think that would make a powerful impact? Think they might remember you when it comes time for them to need your services? And, what about their friends who you have never even met? Do you think they might wonder who you are and what you do when they see you interacting with their friends? You bet! As with most things in life, 90% of success comes from just showing up.
Here's a video by Perry Belcher that explains the point of using Social Media in business better than any others that I have seen. Thank you to Chris Pollinger of the PRC Network for passing this along.
http://www.facebook.com/ext/share.php?sid=53661224331&h=-TJwY&u=g-LQ4
Also, thank you to the dozens of you who have already joined my Facebook, Twitter and LinkedIn networks. Much more good stuff to come.
I'm on Facebook and LinkedIn at Dennis Rosvall or DRosvall@prcstandards.net, and Twitter at UberRealtyGuy. See ya soon!
Brandon Rosvall won the "Best Valentine's Day Theme" Award for his Valentine's Day message to moms everywhere in the 2009 Arcadia Cub Scouts Annual Cake Auction Wednesday night at Hopi Elementary. The auction featured dozens of creative and colorful cakes featuring various Cub Scout and pop culture themes. The final numbers aren't in, but I'm estimating the auction raised in the ballpark of $1,500 this year for Pack 6. Congratulations to all of the theme winners, participants and helpful parents for their great efforts and generous contributions!
Lizzie Rosvall in full costume at the conclusion of Coronado High School's school play "One Upon A Mattress". Presented by the Coronado Performing Arts Department on February 5,6 & 7th, the entire production was really cute. We are proud of Lizzie, a freshman at Coronado, for her role as a Court Lady and singer in the chorus. The entire cast and orchestra did a wonderful job. Please support your local High Schools and help our kids become well-rounded young adults.
It's roof rat time of year again in Arcadia..yeah for us! If you missed the article by Diana Balazs on AZCentral.com on January 26th, check out the following link:
http://www.azcentral.com/community/scottsdale/articles/2009/01/26/20090126sr-rats0128.html
South Arcadia residents Barry & Joan Paceley work hard each year to get the word out about controlling the roof rat population. They expect this year to be worse with all of the vacant and bank owned properties in the area that will not have the citrus fruit harvested or cleaned up. This could be a problem for everyone.
If you know of someone looking to buy a foreclosure home in Arcadia, please give me a call. I have current and updated lists of all of the best deals. Let's try to get some of these vacant properties sold and keep our community nice for everyone. The roof rat population can be easily controlled if everyone does their fair share to keep the citrus off the ground and their yards clean of debris.
Arcadia Neighbor to Neighbor citrus drive
What: Drop off usable fruit from your trees. The fruit is donated to food banks and other community groups.
When: 8 a.m.-noon Saturdays through March 28. Residents also can ask questions about roof rats during a clinic from 9 to 10:30 a.m. each Saturday during the drive. Roof-rat bait stations will be available for $5 each.
Where: Elks BPOE Scottsdale Lodge No. 2148 parking lot, 6398 E. Oak St., Scottsdale.
Volunteers needed: Arcadia Neighbor to Neighbor has a list of senior homeowners throughout the Valley who are not able to pick their citrus. Volunteers are needed to pick primarily oranges and grapefruit 3 to 4 hours on a Saturday morning. If interested, contact Barry Paceley at n2n@paceley.net.
Roof rat information: www.roofrat.net or (602) 273-0435.
Dennis is a Real Estate Broker serving Arcadia, Scottsdale and the Phoenix Metro Area since 1995. He currently serves as a Director of the Scottsdale Area Assoc. of REALTORS and as a marketing coach.
Dear Friends and Neighbors!
I'd like to use this blog to share some exciting news with you regarding our local schools here in Arcadia, this great community we live in, and the real estate market. In fact, many of you have contributed to what I'm about to share. So, I'm very grateful and want to extend a heartfelt thank you. I also hope that you will join me to discuss all that is great in this wonderful neighborhood that we call home.
In 1994 my wife, Jennifer (Castle), and I moved back into the Arcadia area from Portland, OR to the home she was born and raised in. Wanting to put down new roots, I started my Real Estate Practice with a local RE/MAX office serving the Arcadia and Scottsdale areas. My wife went to work for America West Airlines, and together we raised our two children, putting them through Arcadia Montessori and the Arcadia Neighborhood Learning Center (ANLC). With both of our children being special needs kids, we became very involved with Phoenix Children's Hospital, the Children's Miracle Network, Heart-2-Heart, and the Make-A-Wish Foundation. Our son Brandon received his Wish in 2003 with much fanfare, having his bedroom turned into a fire station. He's doing great today, and I have gone on to coach him in Arcadia Little League for four years, and have served as his Den Leader in Arcadia Cub Scouts for just as long. Jennifer has since become a popular substitute teacher at ANLC, and acted as our daughter Elizabeth's Girl Scout Leader for many years.
Because of my community involvement here in the Arcadia area since 1994, and the reputation that I have achieved nationally working with national transferees moving to and from Arizona, I have been awarded a coveted seat on the Parent Relocation Council. The scrutiny to become a PRC Council Member is tough, and in fact, I am the only one who has even been awarded a seat from the Arcadia area. Furthermore, money couldn't buy me a seat on this Council. PRC is all about providing exceptional customer service to buyers and sellers. I had to satisfy stringent, qualifying criteria before I could be seated on this elite Council. In fact, PRC regularly survey's my clients and if I don't maintain my level of Client Satisfaction, I can lose my seat on the Council. Across the country, only the most accomplished and credentialed REALTORS® are accepted for Council Membership. I am honored to have been chosen as one of them.
Founded in the mid 1990's, PRC launched http://www.parentrelocationcouncil.org/ in 2004 and became the nation's only consumer-centric organization dedicated to helping buyers and sellers avoid tragic and heartbreaking real estate transaction disasters by offering a way to separate EXPERIENCED REALTORS® from the inexperienced and often negligent real estate agents. The people at PRC realized that 90% of new licensees don't last in the business more than four years, and unfortunately, the unsuspecting buyers and sellers don't know the right questions to ask to tell the experienced from the inexperienced. PRC solved that problem by awarding Council Membership only to the best REALTORS® in each community, giving consumers an opportunity to buy and sell with confidence. PRC has now grown to help consumers on a daily basis across all 50 states.
Like the folks at PRC, I realized many years ago that buying and selling a home is probably the most stressful business transaction most people experience in their life. And, because people don't buy and sell homes every day, it's easy to get overwhelmed with the tons of information available on the Internet. I help you sort it all out. I can help simplify the process. Along with PRC, I am your ‘silent family member' who you can depend on to make any impending move - across the nation or across the street - less scary and more comfortable."
Since I am the only agent awarded Council Membership in the Arcadia area, I am the only REALTOR® that has access to PRC's relocating buyers. This can be a big help to you - if you are selling. In addition, because PRC is a relocation company, I can extend exclusive relocation benefits to you for your local move that previously have only been available to national transferrees; an offer that can save you thousands of dollars if you are buying or selling.
I invite you to follow my blog and visit the website yourself. As always, I'm here to help with any real estate, school and community needs you may have. For more information about my role in the Parent Relocation Council® or if I can be of any help with your real estate related needs, just give me a call at 480-232-0948 or Email me at DennisRosvall@REALTOR.com
All my best,
Dennis Rosvall
Hello! and thank you for for visiting my blog www.LivingInArcadia.com. I am Dennis Rosvall, an Associate Broker and top-producing agent with RE/MAX Achievers in Arcadia, Scottsdale, and the Phoenix Metro Area. Since 1995, I have been specializing in using the Internet to help families just like yours BUY and SELL residential real estate throughout the Valley of the Sun. As a veteran REALTOR, I am experienced in guiding you through your entire moving process. I am proud to be the first and only REALTOR in the Arcadia area to be selected to be a Council Member of the Parent Relocation Council. This elite status has opened up many doors and resources to help me serve my clients better. My goal is to help you buy the house you want at a price you can afford, or use my EXCLUSIVE access to more relocating buyers from throughout the country to help you sell your home faster with the highest proceeds to you. I believe in using my EXPERIENCE in finance, contracts, negotiating, and marketing to your best advantage, and I pledge to provide you with state-of-the-art, world-class service before, during, and after every transaction.
Not only do I sell a lot of homes, I also make a lot of FRIENDS along the way. People TRUST me for my knowledge, honesty, and integrity. The pride I take in my real estate services are at a level that I'd expect when dealing with other professionals - treat everyone fairly, honestly, and with respect, while working to obtain for them the very best. You may have a family doctor and a family dentist. Well, I want you to think of me as your family REALTOR because I will always be here to answer your questions, and give the extra PERSONAL TOUCH that I hope will bring you back again and again with your real estate needs. I hope that you give me the opportunity to earn that trust.
My wife, Jennifer, and I raise our two beautiful children, Elizabeth (1993) and Brandon (1997) in the Arcadia neighborhood, along with our two St. Bernards, Sophie & Lily. I serve on the Scottsdale Area Association of Realtors Board of Directors, Chairman of the RE/MAX Northeast Valley Tour, Office Ambassador for the Children's Miracle Network, member of the SAAR Leadership Team, Branch Manager of our office in East Scottsdale, Cub Scout Den Leader, and as a former Arcadia Little League Head Coach of my son's team. My sales have regularly placed me in the RE/MAX 100% Club, and I was twice nominated for Scottsdale "Realtor of the Year". I was awarded my State of Arizona Broker License in 2000. Preceding my real estate career, I had a 5-year sales career in Specialty Advertising in my hometown of Portland, Oregon, and obtained my BBA in Marketing and Economics at the University of San Diego (1990).
I hope that we will have the chance to work together in the future. Until then, all of my best to you and yours!
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