Breaking news!

"JPMorgan halts new mortgage foreclosures. Will not put new mortgages into foreclosure for 3 weeks. Believes 3 weeks adequate for Treasury to announce a new mortgage modification plan." Mortgage Market Guide.

It looks to me like JPMorgage-Chase figures that there will be changes coming shortly in relation to working out mortgage modification problems. It has been a hit or miss situation on modifications in the past. There have been some companies that would would with the borrower if they needed a modification and others that preferred to let the foreclosure happen. Changes and guidelines from the government could help this situation. President Obama has announced they are working on something to help the homeowners that are current on their mortgage also.

So, what is happening on the government front now? Are we or aren't we getting the help we need? There are so many variables afloat and no one seems to know what the exact language of anything right now. The consensus is that one of the biggest items that we in the Real Estate industry have been looking for, the tax credit will not be what we want, but may be close. The current $7,500 first time home buyer tax credit is due to expire on July 1.

Details regarding the tax credit that have been released so far, the tax credit has been scaled down to $8,000 from $15,000, or 10% of the value of the home for any first time homebuyers who purchase homes from the start of the year until the end of November. It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years. There are still a lot of details about this plan to be released.

Getting the Real Estate business back to normal, is the most important thing that most of us on Active Rain are interested in, however, the current economic problems go far beyond Real Estate. I will continue to keep on top of what is happening in our arena.

Part 3 in buying a foreclosure using the FHA 203k Streamline Rehab loan has to do with selecting a contractor. And, not just any contactor, but one that will do the job to your specifications in the length of time allowed. The 203k Streamline rehab loan only allows 90 days from closing until the repairs have to be done. Time is as important as price in this situation. You only need a single bid on an FHA 203k Streamline, so you will want to have confidence in your contractor.

The Streamline process does not require a general contractor, but may require two or three specialized contractors like roofers or plumbers or electricians. It is your choice who you use for these jobs and you only need one bid, but the underwriter will determine if they think the bid is either too high or too low and request additional bids in that situation.

1.) Are They Properly Licensed & Insured? — To complete a FHA 203K renovation in Oregon most contractors MUST be licensed by the state. There are exceptions, but very few. You can verify their licensing via the Construction Contractor’s Board (CCB) website. If they aren’t listed then they need to be replaced. If contractors have not met the licensing guidelines, not only will your FHA 203K contractor have a tough time pulling permits, but you loan likely will not make it through underwriting in the first place.

2.) Do They Have References? — We check 2 references for each of your FHA 203K Contractors. All we need is a name and phone number of the reference.

3.) Do They Have a Line of Credit? — We don’t require that your FHA 203K contractors have a line of credit but it makes it easier for them to begin work immediately after closing without having to wait for the first draw. The easiest way to avoid any delays is to make sure they can start work immediately and can pay for it by using their line of credit.

Contractors can be one of the biggest issues with your Oregon FHA 203K loan. Since we are FHA 203K experts we want to make the renovation as painless and profitable as possible (and FASTER to CLOSE as well!). For more information on FHA 203K Loans give us a call at 541-342-7576 and we’ll be more than happy to guide you through the process. Whether it be a renovation of that fantastic foreclosure deal or upgrading your current residence, we can help!

I hope you have gained information from this series. I am going to do one more in the series, part 4 but may be a few days before I have it all put together. Please check back.

So far, you have gotten pre-approved for a loan in a specific price range and you have developed a rapport with the Realtor® that is going to make sure you get the proper guidance and support you need. Now, let's talk about the next very important thing you need to do, selecting the contractor or contractors for your rehab process. This is a very important aspect of your Oregon FHA 203K loan. There are things that you need to look for in the right FHA 203K contractor as they can mean the difference in a successful or unsuccessful FHA 203K renovation.

You read my last post about some of the problems encountered with a foreclosed property and have gotten yourself set up with a knowledgeable lender and are ready to proceed with the next step in the process. This step in purchasing a foreclosure is probably one of the most important there is in the process, especially for the first time home buyer. If you have bought a home before, you may already be familiar with the process, but if you haven't, it can be daunting. That is why step two is: Finding the right Realtor®.

I am not the world’s greatest expert on Realtors®, however I know the ones that I have worked with and understand professional behavior. I know there are Realtors® that can work as the listing agent and the selling agent, but personally, I believe that a buyer should be represented by their own agent and not risk the possible conflict of having a listing agent as your buying agent. The only thing worse, in my opinion, is having your Realtor® also as your loan officer. Now, that I have that out of the way, how do you determine who the right Realtor® is for you? Here are some of my criteria:

1. Find someone that you respect.
2. Find someone that you trust.
3. Find someone that you will listen to and will listen to you.
4. Find someone that you believe.
5. Find a professional.

Do they have to be a man? a woman? young? old? in Eugene? in Springfield? The simple answer is, yes. Your Realtor® should be someone that you decide. Ask them questions and develop a rapport. Tell them what you want. Make certain they are familiar with the area you want to live in.

Can I recommend someone to you? Absolutely! There are a number of Realtors® that are linked to my website and I can recommend all of them highly. For specific recommendations, I have specific people in mind.

A good Realtor® will have access to all of the foreclosed properties in the area you are looking in. This Realtor should be able to narrow the choices from what you have shared but often, the property descriptions are not as accurate as they should be, so you might be looking at properties that are not as suitable as others. Trust your Realtor® and keep faith they will find the right place for you.

Here, I want to talk about loyalty. If you are spending time with a Realtor® and they are taking you to houses that are within your parameters, give them your loyalty. That means that if you go to an open house and the Realtor® at the open house asks if you are working with someone, say yes! If your Realtor® is not showing you what you are looking for, doesn’t return your calls or doesn’t seem to care, then find someone that does. Call me; I will set you up with someone that cares.

OK, this is pretty long, so tune in next time to find out what you need to do once you have found that perfect house (well, it will be after repairs). To understand more about the buying phase, read this article from one of my Realtor® partners, Lori Palermo.

When looking for that new home, especially in today's Real Estate environment, a lot of people think they are going to make a super deal by buying a foreclosure, and maybe they will. Yesterday, I announced the new Fannie Mae HomePath program for Fannie Mae foreclosures, today, I want to discuss the FHA 203k Streamline that works on nearly all foreclosures.

Let’s take a look at the foreclosed property for a minute. First of all, we have a property that has been someone’s home and was probably pretty well cared for, or possibly, it was a rental and has seen better days. Either way, the owner was not able to make the payments for whatever reason and when they stopped making payments, they probably also stopped with their upkeep of the property. So, most often, you have a home that has been vacant for a few months with an absentee owner (a bank or mortgage investor) that is unwilling to put any more money into the property than they already have invested.

The home could be in need of a new furnace. It might have carpet that looks like the former owners had cows for house pets or it might have a roof that is barely keeping the rain out. Are you prepared to make those repairs as soon as you buy the home? Is the house even financeable as it stands.

It may or may not still be a good deal as long as you do your homework. Number one on the homework list of things to do is to find a good lender that can help you with an FHA 203k Streamline loan so you can get those repairs done. Take a look at my recent post about this product from www.myfhamortgageblog.com.